The new business is expected to serve more than 3,000 multinational customers in over 180 countries and generate approximately $4 billion in annual revenue. Verizon will pay BT $625 million as part of the agreement, while both companies will retain equal voting rights.
Verizon Teams Up With BT
BT Group and Verizon Communications agreed to combine their international enterprise operations in a 50:50 joint venture to strengthen their position in the global connectivity market and accelerate the rollout of AI-ready networking services.
The new business will serve more than 3,000 multinational customers across over 180 countries and is expected to generate approximately $4 billion in annual revenue. By bringing together BT International and Verizon's international enterprise wireline business, the companies expect to achieve greater scale, improve operational efficiencies, and expand next-generation connectivity services tailored to cloud computing, artificial intelligence, and evolving data sovereignty requirements.
Under the agreement, Verizon will pay BT an equalization payment of $625 million, while both companies will retain equal voting rights in the joint venture.
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.
The transaction is still 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.
BT.A price over the past 24 hours (Source: Google Finance)
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.
