Private equity firm HIG Capital (HIG) has acquired substantially all the assets of Xtera Communications (Xtera), a provider of innovative and bespoke sub-sea fibre optic solutions.
HIG previously provided debtor-in-possession financing to the Xtera debtors in connection with the chapter 11 case.
Established in 1998 and based in the UK (Harold Wood, Essex) and the US (Allen, Texas), Xtera supplies un-repeatered and repeatered sub-sea systems, using high performance optical amplifiers to carry data. Under HIG’s ownership, Xtera’s management and technical team will remain at the helm of the business, focused on successfully executing key existing customer contracts and expanding the business in the rapidly growing markets it serves with a clear roadmap of disruptive product launches.
Carl Harring, Managing Director at HIG Capital, says: “We believe Xtera has considerable growth potential as an independent, well-funded business with a new ownership structure. 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 capitalise on its technology with a broader base of customers.”
Stuart Barnes, Founder of Xtera, adds: “We are delighted to announce our new partnership with HIG Capital, which has previously invested in the fibre-optics sector and has a proven understanding of how to grow specialist industrial suppliers into market-leading players. We share the same vision of strengthening Xtera’s footprint in the future.”
