Prysmian, Fincantieri to buy Xtera in Subsea Telecom Cables Push

A Prysmian-led joint venture with Fincantieri has signed an agreement to acquire Xtera Topco Limited, a UK- and US-based provider of turnkey subsea telecom systems, in a move that expands Prysmian’s presence beyond energy cables into subsea telecommunications.

The acquisition will be carried out by a joint venture between Prysmian, which will hold an 80% stake, and Fincantieri, which will own the remaining 20%. The deal implies an enterprise value of $65 million and is expected to close in the first quarter of 2026, subject to regulatory approvals.

Xtera is being acquired from an affiliate of H.I.G. Capital. The acquisition will allow Prysmian to become a global player in subsea telecom solutions, building on its existing expertise in subsea energy cables. The partnership with Fincantieri also includes plans to develop installation and security services aimed at offering customers an integrated solution for subsea telecom infrastructure.

Subsea telecom cables are seen as long-term growth assets as demand rises from data centers, hyperscalers and artificial intelligence-related infrastructure, while security considerations are increasingly central to cable deployment and operations.

“Thanks to the acquisition of Xtera we have made a significant leap forward in subsea telecoms, where growth is accelerating driven by the adoption of AI. As the market leader in subsea energy cables, we will now be competitive in delivering regional and long-haul telecom connections globally. Security is a differentiator for our customers, and also thanks to the partnership with Fincantieri, we will offer unique and technologically advanced solutions to the market in a one-stop shop,” said Raul Gil, executive vice president transmission at Prysmian.

“This investment marks a significant milestone in Xtera’s journey to further strengthen our competitive position in subsea telecom systems. We look forward to partnering with Prysmian and Fincantieri to deliver even greater breadth across the value chain to telecom operators and private subsea system owners,” added Keith Henderson, chief executive of Xtera.