Prysmian Targets $4.68 Billion M&A with Hyperscaler Growth in Sight
Prysmian's Acquisition Plans and Growth Strategy
Potential Acquisition and Financial Strength
May 5 (Reuters) - Italian cable maker Prysmian is exploring the market for a potential acquisition of about 4 billion euros ($4.68 billion) enterprise value, CEO Massimo Battaini told Bloomberg News in an interview published on Tuesday.
"We now have the financial strength to resume our M&A strategy," Battaini told Bloomberg, adding that Prysmian could announce deals within 12 months, potentially comparable in size to Encore Wire, bought in 2024 for about 4 billion euros.
Market Reaction and Share Performance
Prysmian shares were up 5.5% at 12:40 pm GMT, after rising as much as 6.7% to a new record high.
Long-Term Growth with Hyperscalers
2026 Guidance and Data Centre Expansion
Last month, the company confirmed its 2026 guidance, and Battaini said Prysmian was close to striking some long-term deals with hyperscalers for future growth in data centres.
Optical Cable Capacity and Investment
The CEO told Bloomberg that these long-term deals could lift optical cable capacity by 40%–50% in the next couple of years, and that the investment was set to exceed $1.2 billion over three years for revenues of more than $5 billion.
M&A Strategy and Financial Outlook
Beating 2026 Guidance
The M&A strategy and the long-term agreements with hyperscalers will help the company beat its 2026 guidance of adjusted EBITDA between 2.63 billion euros and 2.78 billion euros, according to the report.
Potential Outlook Upgrade
First-Quarter Results and Future Prospects
During a media call on first-quarter results, Battaini had indicated that the 2026 outlook could be raised in the coming months.
Additional Information
($1 = 0.8554 euros)
(Reporting by Ruchika Khanna in Bengaluru; Editing by Devika Syamnath)
