H.I.G. Capital Enters Binding Agreement for Xtera's Sale to Prysmian and Fincantieri

H.I.G. Capital Enters Binding Agreement for Xtera's Sale

H.I.G. Capital, a prominent global alternative investment firm managing capital exceeding $72 billion, has announced a significant business move. The firm has entered into a binding agreement to transfer ownership of its portfolio company, Xtera Limited, to a joint venture comprised of Prysmian S.p.A. and Fincantieri S.p.A. This strategic acquisition is anticipated to finalize in the first quarter of 2026, contingent on receiving necessary regulatory approvals.

Xtera's Position in the Market

Based in London, Xtera is recognized as a leading provider of subsea telecom networks. The firm has positioned itself in a rapidly expanding market fueled by the increasing global demand for bandwidth and the necessity for enhanced connectivity and redundancy. Additionally, the swift rise in data center traffic has contributed to the significant growth of companies like Xtera. The firm boasts a robust history of delivering innovative projects to notable clients such as the U.S. Department of Defense and various blue-chip telecommunications operators, solidifying its reputation as a reliable provider of turnkey systems.

H.I.G. Capital initially acquired Xtera in 2017, inheriting the vast majority of Xtera Communications, Inc.'s assets. During H.I.G.'s prospective ownership, the company successfully completed several high-profile turnkey projects, including the acclaimed NO-UK submarine cable system, which achieved record capacity. Another noteworthy project is the TAM-1 system, set to complete in 2026, which will span over 7,000 km, linking Florida with Central America and the Caribbean.

Statements from Leadership

Keith Henderson, CEO of Xtera, expressed gratitude toward H.I.G. Capital for its instrumental role since founding the company in 2017. He acknowledged that H.I.G.'s support has enabled Xtera to emerge as a formidable contender in the subsea telecommunications sector, experiencing substantial growth across all operational facets. Henderson highlighted the anticipation of further momentum under the forthcoming ownership of Prysmian and Fincantieri to broaden their value chain.

John Harper, Managing Director at H.I.G. in London, shared his commendation for the Xtera team, noting their evolution into a premier provider within the burgeoning subsea telecommunications market. Harper commented on the successful collaborations between H.I.G. and Xtera’s team across various strategic initiatives and investments in Research and Development, which spurred notable growth during their ownership period. He expressed optimism regarding the company's future success under new ownership.

About Xtera

Xtera stands at the forefront of innovation in subsea and telecommunications technologies, offering a variety of repeatered and unrepeatered systems that leverage high-performance optical amplifiers for efficient traffic delivery to urban centers. The company thrives on its ability to flexibly collaborate with industry partners to tailor optimal solutions for its clients. For further insights into their offerings, visit xtera.com.

About H.I.G. Capital

Founded in 1993, H.I.G. Capital has established itself as a leading global alternative investment firm with $72 billion in capital managed worldwide. The firm operates from its headquarters in Miami alongside offices in major cities across the United States and international affiliate locations in Europe and South America. H.I.G. specializes in providing both debt and equity capital to middle-market companies through a strategy characterized by operational focus, value addition, and flexibility.

H.I.G.'s diverse investment approach encompasses management buyouts, recapitalizations, corporate carve-outs, as well as restructuring efforts in the manufacturing and service sectors. For more comprehensive information, the firm maintains an online presence at hig.com.