The Global Subsea Fiber Cable Market is Heating Up
It may be early in 2017, but we’re already starting to see activity in the global subsea fiber cable market.
Just recently, leading subsea fiber optic solutions provider Xtera Communications, Inc. agreed to sell substantially all of its assets to H.I.G. Capital, a global private equity investment firm with over €20 billion ($25 billion USD, approximately) of equity capital under management.
Established in 1998 and based in Allen, Texas, and Harold Wood, Essex, UK, Xtera supplies un-repeatered and repeatered subsea systems using high-performance optical amplifiers to carry data. Now under H.I.G. ownership, Xtera’s management and technical team will continue running the business and will focus on successfully executing key customer contracts and expanding the business in its core growing markets with a clear roadmap of disruptive product launches.
“We believe Xtera has considerable growth potential as an independent, well-funded business with a new ownership structure,” stated Carl Harring, Managing Director at H.I.G. Capital. “Its world-class IP protected technology is not only differentiated and superior to that of its competitors, but it is delivered to an impressive range of global clients at a cost-effective price point. We are excited to be working with this industry-leading team, and our immediate focus will be to work with them to deliver and build on existing contracts and, over the long-term, provide the financial support to enable the company to fully capitalize on its technology with a broader base of customers.”
Xtera Founder Stuart Barnes also commented on the partnership.
“We are delighted to announce our new partnership with H.I.G. Capital, which has previously invested in the fiber-optics sector and has a proven understanding of how to grow specialist industrial suppliers into market-leading players,” explained Barnes. “We share the same vision of strengthening Xtera’s footprint in the future.”
The investment follows H.I.G.’s recent sale of U.K.-based specialty optical fiber designer and manufacturer Fibercore. H.I.G. grew Fibercore from a niche producer into a world-leading provider of optical fiber for a range of high-tech industries. Fibercore was acquired from Cisco in a carve-out transaction in 2011.