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H.I.G. Capital acquisition of Xtera

Silverpeak used its in-depth knowledge of optical communications to deliver a result for all parties

Who are they

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. These systems use high performance optical amplifiers to carry data.

What was our involvement

We were the exclusive advisor to H.I.G. Capital (“H.I.G.”) and the management of the sub-sea division of Xtera Communications Inc (“Xtera”) on the acquisition of substantially all the assets of Xtera. 

We identified H.I.G. as the most suitable partner based on their knowledge of the optical communications sector and belief in the management team. 

We also advised H.I.G. and provided financial advice through all phases of the transaction, working closely with Carl Harring, Managing Director at H.I.G. Capital. H.I.G. provided debtor-in-possession financing to the Xtera debtors in connection with the Chapter 11 case.

Under H.I.G.’s ownership, Xtera’s management and technical team will remain at the helm of the business. They will be focused on successfully executing key existing customer contracts and expanding the business in its rapidly growing markets. This includes having a clear roadmap of disruptive product launches.

Stuart Barnes, VP & GM of Xtera Sub-sea, commented: “We selected Silverpeak because of their in-depth knowledge of the tech space, and in particular optical communications. Throughout the process, they provided a great combination of intellect and pragmatism, which yielded a great result.”

Keith Henderson, COO of Xtera, added: “The Silverpeak team are dedicated professionals with in-depth relationships in the technology market. Without Silverpeak we would not have found a financial sponsor who could work to tight timelines and successfully close our MBO. Silverpeak assisted us flawlessly from the beginning to the end of the transaction.”

Pietro Strada, Managing Partner at Silverpeak, led the process. He said: “Our sector knowledge and relationships secured the trust of the management team and allowed us to find a formidable financial sponsor in H.I.G.  This transaction was complex and intense: the team here did an outstanding job at addressing the execution challenges. We are delighted to have assisted H.I.G. and management in acquiring Xtera. The new business offers differentiated technology to submarine cable operators and no doubt will become a market leader in the years ahead.”