BT Group and Verizon have agreed to combine their international enterprise operations in a 50:50 joint venture, creating a new company focused on multinational connectivity.
The companies said the joint venture is expected to serve more than 3,000 customers across more than 180 countries and represent approximately $4 billion in combined annual revenue. Verizon has also agreed to pay BT an “equalisation payment” of $625 million.
The planned venture will bring together BT International and Verizon’s international enterprise wireline business. BT and Verizon said the combined operation is intended to support multinational organisations’ requirements across borders and cloud environments, including local compliance and data sovereignty needs.
Martijn Blanken has been appointed chief executive officer-designate of the new joint venture, subject to completion of the transaction. The companies said he will join BT from 1 September and work with both parent companies as preparations continue.
Clive Selley will continue to lead BT International as CEO until the joint venture is formed, while Verizon’s leadership remains unchanged, according to the announcement.
The transaction is expected to complete in 2027, subject to regulatory clearances, consultation with employee representatives where required, and other customary closing conditions. Until completion, BT and Verizon said their international businesses will continue to operate independently.
“The world’s leading brands and international organisations trust BT International to connect them across the world. Bringing together this expertise and heritage with Verizon’s deep relationships with multinationals will create a stronger, scaled connectivity partner – one that has the reach, innovation and investment to succeed,” said Allison Kirkby, Chief Executive of BT Group.
“Our international customers require secure, flexible connectivity that works seamlessly across borders and cloud environments. When we thought about how to best support them, this joint venture was the clear answer: a cutting-edge, AI-ready and secure platform run by a single global organization dedicated to their needs,” said Dan Schulman, CEO of Verizon.
Additional details provided by the companies include that the new joint venture will be incorporated in the Bailiwick of Jersey and headquartered and tax resident in the United Kingdom. The companies also said the venture is expected to establish commercial relationships with both BT and Verizon to provide services across borders, including for customers in the UK and the US.
