Submarine cable manufacturer, Prysmian Group, has acquired Texas-based connectivity solutions provider, Channell Commercial Corporation, through a deal valued at USD 950 million, with a potential USD 200 million earn-out.
The acquisition will focus on facilitating Prysmian’s transition from a traditional cable manufacturer to an innovative digital solutions provider.
By leveraging Channell’s expertise in fiber-optic cable management solutions, Prysmian aims to expand its North American footprint, addressing the growing demands of data centers and accelerating fiber and 5G technology rollout across the United States and Europe.
The transaction aims to enhance Prysmian’s digital infrastructure capabilities and position it as a global digital solutions provider. The deal is set to be a mix of debt and equity capital market instruments, including hybrid bonds and treasury sales disposal.
Massimo Battaini, Prysmian’s CEO, highlighted, “Our journey from cable manufacturer to world-class solutions provider is accelerating, and thanks to strengthening in the connectivity solutions space, we will be best placed to capture growth in the market, which is being boosted by digitalization and the rollout of AI.”
Battaini added, “We are strengthening our exposure to North America while, at the same time, gaining know-how and a product portfolio that will enable us to be even more competitive across the globe.”
Bill Channell Jr., Channell’s CEO and Owner, emphasized, “I believe strongly that Prysmian is the best new home for Channell and its employees and will safeguard the Channell legacy for the next 100 years.”
This strategic initiative follows Prysmian’s recent partnership with Relativity Networks for the mass production of hollow core fiber (HCF) and cabling. The acquisition further aligns with Prysmian’s broader strategy to adopt digitalization trends, including artificial intelligence (AI) and advanced telecommunication infrastructure.
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