About the Xtera HIG Capital acquisition
Silverpeak acted as the exclusive financial adviser to H.I.G. Capital on the Xtera HIG Capital acquisition, securing substantially all of Xtera’s assets. Xtera Communications provides innovative subsea fibre optic solutions. This transaction was completed through a Chapter 11 process and secured a strong financial sponsor for the business and its management team.
Xtera Communications
Xtera was founded in 1998. The business operates from Harold Wood in Essex, UK, and from Allen, Texas in the US. It supplies unrepeatered and repeatered subsea systems, using high-performance optical amplifiers to carry data across subsea cable networks. After the acquisition, Xtera’s management and technical team stayed in place. They continue to focus on existing customer contracts and expanding into fast-growing markets. Furthermore, the business has a clear plan for new product launches ahead.
How Silverpeak added value
Silverpeak supported H.I.G. Capital throughout the deal, including its provision of financing to Xtera during the Chapter 11 case. Xtera’s subsea management appointed Silverpeak as their exclusive adviser to find a financial sponsor. Silverpeak then identified H.I.G. as the most suitable partner. Their deep knowledge of optical communications and their confidence in the management team made H.I.G. the clear choice. Moreover, Silverpeak advised H.I.G. across all phases of the deal, working closely with Carl Harring, Managing Director at H.I.G. Capital.
What our clients said
Stuart Barnes, VP and GM of Xtera Subsea, said: “We chose Silverpeak for their deep knowledge of the tech space. Their understanding of optical communications stood out. Throughout the process, they combined intellect and clear thinking. As a result, we achieved a great outcome.”
Keith Henderson, COO of Xtera, added: “The Silverpeak team are dedicated professionals. Their relationships in the technology market run deep. Without Silverpeak, we would never have found a financial sponsor able to work to tight timelines. Furthermore, they supported us flawlessly from start to finish.”
Pietro Strada, Managing Partner at Silverpeak, said: “Our sector knowledge helped us earn the trust of the management team. It also allowed us to identify H.I.G. as the ideal partner. This deal was complex and intense. Nevertheless, the team addressed every challenge with skill. We are proud to have supported H.I.G. and management in acquiring Xtera. The business offers strong technology to submarine cable operators. In time, it will become a market leader.”