Prysmian has agreed to acquire Xtera through a joint venture with Fincantieri, strengthening its position in the global submarine telecom market.
The acquisition will be carried out by a Prysmian-led joint venture, with Prysmian holding an 80% stake and Fincantieri 20%. Xtera is being acquired from an affiliate of H.I.G. Capital.
Xtera is a UK- and US-based provider of turnkey submarine telecom systems. The deal positions Prysmian as a global player in submarine telecom, building on its existing leadership in submarine energy cables.
Prysmian and Fincantieri have also formed a strategic partnership. The collaboration will focus on installation, monitoring, and security services. Together, the companies aim to offer customers a one-stop shop for end-to-end submarine telecom solutions.
Fincantieri said the partnership strengthens its role as an integrator of advanced underwater systems. The group will focus on unmanned technologies and subsea security solutions.
The companies expect long-term growth from rising demand for data centers, hyperscalers, and long-haul connectivity. Increasing use of artificial intelligence is driving the need for new regional and intercontinental submarine cable systems.
Moreover, security will be a core part of the offering. Prysmian’s cable manufacturing and monitoring capabilities will be combined with Fincantieri’s expertise in underwater systems and protection.
Prysmian said the acquisition allows it to compete across both energy and telecom subsea markets. Fincantieri said the deal aligns with its strategy to make the underwater domain a key pillar of future growth.
Lastly, Xtera said the transaction strengthens its competitive position and expands its ability to serve telecom operators and private subsea system owners worldwide.
