Prysmian last week announced the acquisition of cable manufacturer Channell Commercial Corporation for $950 million.

The Italian cable manufacturing company noted that the deal will “accelerate its journey from cable manufacturer to solutions provider.

Expected to close in the second quarter of this year, it has the potential for an additional $200 million earn-out.

Prysmian said the deal will be funded by a mix of debt and equity capital market instruments, including hybrid bonds and treasury shares disposal.

Texas-based Channell specializes in manufacturing fiber optic cabling. Founded in 1922, the company has three manufacturing facilities across the country in Texas, Nevada, and California and has close to 1,000 employees.

Channell’s customer base serves the telecommunications, broadband, utility, and power sectors.

According to Prysmian, the acquisition will expand its North American footprint as it looks to support the growth of data centers, plus the rollout of fiber and 5G in the US and Europe.

Last week, the company struck a partnership with Hollow Core Fiber (HCF) specialists Relativity Networks for the mass production of HCF and cabling.

“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 roll-out of AI,” said Massimo Battaini, Prysmian CEO.

“We are strengthening our exposure to North America while at the same time gaining know-how and a product portfolio which will enable us to be even more competitive across the globe.”

Bill Channell Jr, Channell CEO and owner, added: “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.”