Why Fixing Subsea Cables Fast Is Now Big Business

Prysmian and Fincantieri plan to acquire Xtera, reflecting an industry view that faster repair and integrated support are becoming key differentiators

20 Jan 2026

A planned acquisition of Xtera is highlighting a shift in the subsea cable industry, where the speed of repairs is increasingly seen as a commercial advantage rather than a purely technical issue.

A joint venture led by Prysmian and backed by Italian shipbuilder Fincantieri has agreed to buy the submarine telecom systems provider for an enterprise value of $65mn. The deal, which is subject to regulatory approval, is expected to close in the first quarter of 2026. Prysmian would take an 80 per cent stake, with Fincantieri holding the remaining 20 per cent.

Subsea cables carry much of the world’s cloud data, financial transactions and internet traffic, making outages costly for operators and customers. When faults occur, restoration times depend not only on the availability of repair vessels but also on spare equipment, specialist engineers and coordination across multiple suppliers.

Industry analysts say this complexity is driving consolidation, as cable owners seek fewer counterparties and more predictable long-term support. Faster response times and clearer accountability are becoming important factors in procurement decisions.

Prysmian has presented the transaction as part of a broader effort to strengthen its position in submarine telecom systems. Industry participants point to rising demand for end-to-end offerings, firmer service-level agreements and improved security, as governments and network operators place greater weight on resilience and reliability.

For Xtera, the acquisition is expected to bring greater scale and financial backing. Chief executive Keith Henderson has said the agreement marks a milestone in supporting the company’s growth ambitions within the subsea telecom market.

The deal also reflects wider changes in the sector. As new cable routes land across Europe and data traffic continues to rise, customers are increasingly favouring larger, more integrated suppliers that can both deliver systems and provide ongoing operational support.

While buyers may benefit from simpler procurement and clearer responsibility, the trend raises the bar for competitors and could encourage further partnerships or transactions. Integration risks and regulatory scrutiny remain, particularly as subsea infrastructure takes on greater strategic importance.

Even so, industry momentum appears to favour providers that combine scale with readiness and reliability, with repair capability moving closer to the centre of competitive strategy.