NEW YORK CITY (dpa-AFX) - British telecom major BT Group plc (BT, BT_A.L) and its U.S. peer Verizon Communications Inc. (VZ) announced Monday an agreement to combine their respective international enterprise operations into a 50:50 joint venture, which will focus on serving multinational organisations.
Further, BT has updated outlook for fiscal 2027 and mid-term guidance, as BT International division will be reported as a discontinued operation following the JV deal.
As per the deal, BT International will be combined 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.
The JV will serve more than 3,000 customers across more than 180 countries, representing around $4 billion in combined annual revenue.
It is expected that the combination of international networking businesses would create a new platform designed for the age of cloud and AI.
The JV formation is expected to complete in 2027, subject to regulatory clearances and other customary closing conditions. Until the deal closure, BT and Verizon's international businesses will continue to operate independently.
BT and Verizon have also confirmed that Martijn Blanken has been appointed Chief Executive Officer-designate of the new joint venture, conditional on the completion of the transaction. He will join BT from September 1, and will work with both parent companies.
Clive Selley will continue to lead BT International as CEO. Verizon's leadership remains unchanged.
The JV is expected to help the parent companies to better focus on their domestic markets, while providing support to the new joint venture as equal shareholders.
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