H.I.G. Capital Enters Agreement to Sell Xtera to Joint Venture Leaders
On December 30, 2025, H.I.G. Capital, a prominent global alternative investment firm managing an impressive $72 billion in capital, confirmed a major step in their portfolio management. The firm revealed that an affiliated entity has entered a binding agreement for the sale of its portfolio company, Xtera Limited, to a joint venture led by Prysmian S.p.A. and Fincantieri S.p.A. This transaction is set to bolster the capabilities of the acquiring companies as they expand their presence in the rapidly evolving subsea telecom market.
Xtera, headquartered in London, is renowned for its innovation in subsea telecom networks. With the increasing global demand for bandwidth, enhanced connectivity, and robust redundancy encouraged by rising data traffic, Xtera holds a strategic position in this burgeoning market. The firm has established a reputation for delivering reliable turnkey systems to high-profile clients, including the U.S. Department of Defense and top-tier telecom operators.
H.I.G. Capital's relationship with Xtera dates back to 2017 when they acquired substantially all assets from Xtera Communications, Inc. Since then, the company has made remarkable strides under H.I.G.'s ownership, completing multiple significant projects, including the NO-UK submarine cable system that holds the record for its capacity. Currently, Xtera is working on the TAM-1 system, expected to connect Florida with Central America and the Caribbean, spanning over 7,000 kilometers and anticipated to complete in 2026.
Keith Henderson, the CEO of Xtera, expressed high praise for the partnership with H.I.G., stating, "H.I.G. has been an exceptional partner to Xtera since establishing the Company in 2017. Through H.I.G.'s investment, we have been able to rebuild a formidable competitor in the subsea telecoms industry, achieving substantial growth across all our operations. We eagerly look forward to continuing this momentum under the new ownership of Prysmian and Fincantieri as we enhance our value chain further."
John Harper, Managing Director at H.I.G. in London, also commented on the successful collaboration with Xtera, noting, "We have proudly supported the Xtera team as they became a leading entity in the rapidly growing subsea telecoms market. Our partnership enabled various strategic initiatives, including research and development investments, significantly contributing to the Company's growth during our ownership period. We are excited to witness Xtera's continued success under Prysmian and Fincantieri's leadership."
Xtera stands out as an innovative provider in subsea and telecom technology, offering both repeatered and unrepeatered systems. Utilizing high-performance optical amplifiers, they effectively channel traffic directly inland to urban areas while remaining flexible in collaboration with industry partners to create optimal solutions.
H.I.G. Capital emphasizes a flexible, operationally focused approach with its investments. The firm specializes in both equity and debt financing for middle-market companies, and has a comprehensive portfolio that spans multiple sectors. Since its inception in 1993, H.I.G. has made strategic investments in over 400 companies worldwide, with a current portfolio that boasts more than 100 firms generating a total sales figure exceeding $53 billion.
The sale awaits regulatory approvals, but with the completion expected in the first quarter of 2026, this acquisition signals a pivotal moment for both Xtera and the joint venture, further reinforcing their positions in the crucial subsea telecom sector. For more information about both Xtera and H.I.G. Capital, interested parties can visit their respective websites.
Xtera, headquartered in London, is renowned for its innovation in subsea telecom networks. With the increasing global demand for bandwidth, enhanced connectivity, and robust redundancy encouraged by rising data traffic, Xtera holds a strategic position in this burgeoning market. The firm has established a reputation for delivering reliable turnkey systems to high-profile clients, including the U.S. Department of Defense and top-tier telecom operators.
H.I.G. Capital's relationship with Xtera dates back to 2017 when they acquired substantially all assets from Xtera Communications, Inc. Since then, the company has made remarkable strides under H.I.G.'s ownership, completing multiple significant projects, including the NO-UK submarine cable system that holds the record for its capacity. Currently, Xtera is working on the TAM-1 system, expected to connect Florida with Central America and the Caribbean, spanning over 7,000 kilometers and anticipated to complete in 2026.
Keith Henderson, the CEO of Xtera, expressed high praise for the partnership with H.I.G., stating, "H.I.G. has been an exceptional partner to Xtera since establishing the Company in 2017. Through H.I.G.'s investment, we have been able to rebuild a formidable competitor in the subsea telecoms industry, achieving substantial growth across all our operations. We eagerly look forward to continuing this momentum under the new ownership of Prysmian and Fincantieri as we enhance our value chain further."
John Harper, Managing Director at H.I.G. in London, also commented on the successful collaboration with Xtera, noting, "We have proudly supported the Xtera team as they became a leading entity in the rapidly growing subsea telecoms market. Our partnership enabled various strategic initiatives, including research and development investments, significantly contributing to the Company's growth during our ownership period. We are excited to witness Xtera's continued success under Prysmian and Fincantieri's leadership."
Xtera stands out as an innovative provider in subsea and telecom technology, offering both repeatered and unrepeatered systems. Utilizing high-performance optical amplifiers, they effectively channel traffic directly inland to urban areas while remaining flexible in collaboration with industry partners to create optimal solutions.
H.I.G. Capital emphasizes a flexible, operationally focused approach with its investments. The firm specializes in both equity and debt financing for middle-market companies, and has a comprehensive portfolio that spans multiple sectors. Since its inception in 1993, H.I.G. has made strategic investments in over 400 companies worldwide, with a current portfolio that boasts more than 100 firms generating a total sales figure exceeding $53 billion.
The sale awaits regulatory approvals, but with the completion expected in the first quarter of 2026, this acquisition signals a pivotal moment for both Xtera and the joint venture, further reinforcing their positions in the crucial subsea telecom sector. For more information about both Xtera and H.I.G. Capital, interested parties can visit their respective websites.
Topics Business Technology）
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