BT Group plc (LON:BT.A) and Verizon Communications Inc. (NYSE, Nasdaq: VZ) have announced the signing of an agreement to combine their respective international enterprise operations into a 50:50 joint venture – in a move that is set to transform international connectivity.
The new joint venture will focus on serving multinational organisations. It is expected to serve more than 3,000 customers across more than 180 countries, representing approximately $4 billion in combined annual revenue. This breadth of operations will unlock significant scale efficiencies across the combined global network and service operations following completion.
Designed specifically for a cloud-first world in the age of AI, the joint venture brings together BT International, which serves multinational customers with secure and resilient communication and network services around the world, with Verizon’s international enterprise wireline arm, which provides secure connectivity to enterprises worldwide. Both BT and Verizon will hold equal voting rights and Verizon has agreed to pay BT an equalisation payment of $625 million.
By combining global scale with infrastructure designed and built to support local compliance and sovereignty needs, the joint venture will create a stronger platform for growth and accelerate the rollout of next-generation connectivity platforms. Customers will benefit from secure and resilient connectivity designed to meet data, operational and regulatory requirements.
At the same time, the parent companies will be better able to focus on their domestic markets, while providing support to the new joint venture as equal shareholders.
BT and Verizon have also today confirmed that Martijn Blanken has been appointed Chief Executive Officer-designate of the new joint venture, conditional on the completion of the transaction. Martijn has almost three decades in senior leadership positions across telecommunications, technology and digital infrastructure at Telstra, Openwave Systems, EXA Infrastructure and KPN, and a career spanning four continents. From 01 September he will join BT and will work with both parent companies, while observing relevant regulatory requirements, as they prepare for the launch of the proposed joint venture.
Clive Selley will continue to lead BT International as CEO, ensuring continuity of BT International’s ongoing transformation in readiness for the creation of the joint venture. Verizon’s leadership remains unchanged.
Allison Kirkby, Chief Executive of BT Group, said: “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. 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 UK-focused strategy.”
Dan Schulman, CEO of Verizon, said: “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.”
The transaction is subject to regulatory clearances and consultation with employee representations in countries where required. BT and Verizon’s international businesses will continue to operate independently until the transaction officially closes with a full commitment to their respective customers.
