Prysmian has completed the acquisition of Xtera, a London-based provider of turnkey submarine telecom systems, through a joint venture with Fincantieri at an enterprise value of $65m.
Why Prysmian (80%) and Fincantieri (20%) joint venture is buying Xtera
The deal gives Prysmian end-to-end capability in submarine telecom projects, combining Xtera's optical engineering with its own cable manufacturing. "Submarine telecom represents an important growth opportunity for Prysmian," said Raul Gil, executive vice-president for transmission, adding that the group may explore a dedicated submarine telecom cable-laying vessel.
Deal terms and financing
Prysmian holds 80% of the joint venture and Fincantieri 20%. The transaction values Xtera at an enterprise value of $65m.
Market context
In September Xtera was selected by EXA Infrastructure to supply the optical engineering and wet and dry plant for EXA Meridian, a 6,552km cable linking New Jersey with Brean in the UK and targeted for service in 2029. Prysmian is doubling capacity at its Nordenham site in Germany, formerly NSW, and plans to hire up to 300 people there.
