H.I.G. Capital Finalizes Binding Agreement to Sell Xtera to Joint Venture

H.I.G. Capital Sells Xtera to Joint Venture

H.I.G. Capital, a prominent alternative investment firm managing assets worth $72 billion, has announced a significant transaction involving the sale of its subsidiary, Xtera Limited. The acquisition is set to be conducted by a joint venture led by Prysmian S.p.A. and Fincantieri S.p.A. However, the completion of this sale is contingent on various regulatory approvals.

Xtera, headquartered in London, UK, is recognized as a leader in the field of subsea telecommunications networks. The company operates within a rapidly expanding market fueled by the increasing global demand for bandwidth, the necessity for enhanced global connectivity, and the surging data traffic in data centers. Xtera distinguishes itself by its commitment to innovation and its track record in executing projects for significant clients, including the U.S. Department of Defense and esteemed telecommunications operators. This positions Xtera as a trustworthy provider of turnkey systems, capable of delivering high-quality telecommunications solutions.

Founded by H.I.G. in 2017 after acquiring most of the assets from Xtera Communications, Inc., the company has since unveiled several major turnkey projects. Among these is the NO-UK subsea cable system, which has achieved a record capacity, and the upcoming TAM-1 system. The latter is expected to be completed by 2026, spanning over 7,000 kilometers and connecting Florida with Central America and the Caribbean.

Keith Henderson, CEO of Xtera, expressed gratitude towards H.I.G. for its support since the company’s inception, stating, "H.I.G. has been an excellent partner for Xtera since our founding in 2017. Thanks to H.I.G.'s investment, we have been able to rebuild Xtera into a significant competitor in the subsea telecommunications space and achieve substantial growth across all our business areas. We look forward to continuing this momentum under the ownership of Prysmian and Fincantieri to reach even greater bandwidth along the entire value chain."

John Harper, Managing Director at H.I.G. in London, added, "We are proud to have supported the Xtera team on their journey to becoming a leading player in the fast-growing subsea telecommunications market. Our partnership with Keith and his team across various strategic initiatives and R&D investments has led to significant growth during our ownership. We look forward to the continued success of the company under its new owners."

About Xtera

Xtera is an innovative provider of underwater and telecommunications technology. The company specializes in both repeater and non-repeater systems, utilizing its powerful optical amplifiers to transmit traffic directly inland to cities. Xtera's flexibility allows it to collaborate with industry partners to deliver optimal solutions tailored for clients. More information can be found on their website, xtera.com.

About H.I.G. Capital

H.I.G. Capital is a leading global alternative investment firm headquartered in Miami, with offices throughout the United States and several international subsidiaries. They specialize in providing debt and equity capital for small and mid-sized companies, utilizing a flexible, operationally focused, and value-add approach.

H.I.G. equity funds invest in management buyouts, recapitalizations, and spinouts of both profitable and underperforming manufacturing and service enterprises, while their credit funds focus on senior, unitranche, and subordinated debt financing across various sizes of companies. The firm also manages a publicly traded investment company, WhiteHorse Finance. H.I.G. Infrastructure is committed to value-add and core-plus investments in the infrastructure sector.

Since their establishment in 1993, H.I.G. has invested in over 400 companies globally and currently manages more than 100 companies with total sales exceeding $53 billion. For more information, please visit hig.com.