BT and Verizon Combine International Enterprises into 50:50 Joint Venture

British telecoms and broadband giant BT Group has this morning announced that they’ve signed an agreement with Verizon Communications to combine their respective international enterprise operations into a 50:50 joint venture. Both operators will hold equal voting rights and Verizon has agreed to pay BT an equalisation payment of $625m (£473m).

The new JV, which is expected to “unlock significant scale efficiencies across the combined global network and service operations“, will focus on serving multinational organisations. It is expected to serve more than 3,000 customers across more than 180 countries, representing approximately £3bn ($4bn) in combined annual revenue.

“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 … 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,” said the announcement.

As part of this, Martijn Blanken has been appointed CEO-designate of the new joint venture (effective from 1st Sept 2026). Martijn has almost three decades in senior leadership positions across telecommunications, technology and digital infrastructure at Telstra, Openwave Systems, EXA Infrastructure and KPN. Meanwhile, Clive Selley will continue to lead BT International as CEO, ensuring continuity in readiness for the creation of the JV.

Allison Kirkby, CEO 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 currently expected to complete sometime in 2027, albeit subject to the usual regulatory clearances and other customary closing conditions. BT and Verizon hope the JV will create a stronger platform for growth and accelerate the rollout of next-generation connectivity platforms.

The new JV will be incorporated in the Bailiwick of Jersey and headquartered and tax resident in the United Kingdom. Goldman Sachs acted as lead financial advisor to BT, with Deloitte as transaction services advisors and Freshfields LLP as legal counsel. Morgan Stanley & Co. LLC acted as financial advisors to Verizon and Kirkland & Ellis LLP acted as legal counsel.