BT Group and Verizon announced an agreement to combine their respective international enterprise operations into a 50:50 joint venture focused on serving multinational customers.
The new company is expected to serve more than 3,000 customers across more than 180 countries, representing approximately $4 billion in combined annual revenue.
The transaction is designed to create a scaled international connectivity platform for multinational organizations operating across borders and cloud environments.
The joint venture will combine BT International, which provides secure and resilient communications and network services to multinational customers, with Verizon’s international enterprise wireline business, which provides secure connectivity to enterprises worldwide.
BT and Verizon will hold equal voting rights in the new company. Verizon has agreed to pay BT an equalization payment of $625 million.
The companies said the joint venture is being designed for a cloud-first world in the age of AI, with infrastructure built to support local compliance and sovereignty requirements.
Customers are expected to benefit from secure and resilient connectivity designed to meet data, operational, and regulatory needs.
The structure also enables BT and Verizon to focus more directly on their domestic markets while supporting the joint venture as equal shareholders.
Martijn Blanken has been appointed CEO-designate of the new joint venture, subject to completion of the transaction.
Blanken has nearly three decades of senior leadership experience across telecommunications, technology, and digital infrastructure, including roles at Telstra, Openwave Systems, EXA Infrastructure, and KPN.
Beginning September 1, 2026, Blanken will join BT and work with both parent companies as they prepare for the proposed joint venture’s launch, while complying with applicable regulatory requirements.
Clive Selley will continue to lead BT International as CEO to support continuity during BT International’s transformation ahead of the joint venture. Verizon’s leadership remains unchanged.
The transaction is expected to close in 2027, subject to regulatory clearances, consultation with employee representatives where required, and other customary closing conditions.
BT and Verizon’s international businesses will continue to operate independently until the transaction closes.
The joint venture will be incorporated in the Bailiwick of Jersey and headquartered and tax resident in the United Kingdom.
After closing, the joint venture will establish commercial relationships with both BT and Verizon to provide end-to-end cross-border services, including for customers in the U.K. through BT and in the U.S. through Verizon.
Goldman Sachs served as lead financial advisor to BT, with Deloitte serving as transaction services advisor and Freshfields serving as legal counsel.
Morgan Stanley served as financial advisor to Verizon, and Kirkland & Ellis served as legal counsel.
KEY QUOTES:
“The world’s leading brands and international organizations 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. Customers will benefit from new, secure and resilient connectivity platforms which are designed for the age of AI and sovereign where it matters. It will create new opportunities for our people and long-term value for our owners. Today’s announcement marks a major milestone for BT International, and an important step forward for BT as a whole, as we deliver on our U.K.-focused strategy.”
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. At the same time, our relationship with those customers will stay equally strong as we continue to directly provide them with the connectivity they need in the U.S.”
Dan Schulman, CEO of Verizon
