Verizon Communications and BT Group agreed to combine their international enterprise operations in a 50:50 joint venture. The new business is expected to serve more than 3,000 multinational customers across over 180 countries and generate approximately $4 billion in annual revenue. The companies aim to achieve greater scale, improve operational efficiencies, and expand next-generation connectivity services tailored to cloud computing, artificial intelligence, and evolving data sovereignty requirements. The joint venture brings together BT International and Verizon's international enterprise wireline business to strengthen their position in the global connectivity market and accelerate the rollout of AI-ready networking services.
Joint Venture Structure and Financial Terms
Under the agreement, Verizon will pay BT an equalization payment of $625 million. Both companies will retain equal voting rights in the joint venture. By bringing together BT International and Verizon's international enterprise wireline business, the companies expect to achieve greater scale and improve operational efficiencies. The new business is expected to generate approximately $4 billion in annual revenue and serve more than 3,000 multinational customers in over 180 countries.
Leadership and Timeline
Martijn Blanken has been appointed Chief Executive Officer-designate of the new venture, subject to the transaction closing. Blanken brings close to three decades of leadership experience in the telecommunications and digital infrastructure sectors. He held senior positions at Telstra, Openwave Systems, EXA Infrastructure, and KPN. He will join BT on Sept. 1 to help prepare for the launch of the business. Until then, BT International will be led by CEO Clive Selley, while Verizon's leadership structure will stay unchanged.
Regulatory Process and Market Response
The transaction is subject to regulatory approvals and employee consultations in relevant jurisdictions. Until the deal officially closes, BT International and Verizon's international enterprise business will continue operating independently. Investors responded positively to the announcement. BT shares rose approximately 0.54% during early trading in London, while Verizon shares gained around 1% in US trading right before the weekend.
FAQ
What did Verizon and BT announce?
Verizon Communications and BT Group announced a 50:50 joint venture combining their international enterprise operations. The new business is expected to serve more than 3,000 multinational customers across over 180 countries and generate approximately $4 billion in annual revenue.
Who will lead the Verizon-BT joint venture?
Martijn Blanken has been appointed Chief Executive Officer-designate of the new venture, subject to the transaction closing. He will join BT on Sept. 1 to help prepare for the launch of the business. Until then, BT International will be led by CEO Clive Selley, while Verizon's leadership structure will stay unchanged.
