- Transatlantic deal creates 50-50 partnership spanning 180 countries, serving over 3,000 customers.
- The transaction is expected to close in 2027, pending regulatory clearances and customary closing conditions.
- The deal comes on the back of soaring complexity facing multinational clients amid cloud migration and the adoption of AI.
LONDON/NEW YORK— In one of the most significant transatlantic telecom transactions in recent memory, BT Group and Verizon Communications announced Monday they have signed a binding agreement to merge their respective international enterprise operations into a 50-50 joint venture, a move the companies say will redraw the competitive map for multinational connectivity.
The two carriers agreed to combine their international operations in equal partnership, creating a new company aimed squarely at multinational enterprise clients. The entity is projected to serve more than 3,000 customers across more than 180 countries, generating approximately $4 billion in combined annual revenue.
The deal unites BT International, the British incumbent’s arm serving global corporates with secure network and communications services, with Verizon’s international enterprise wireline business. Verizon has agreed to pay BT an equalization payment of $625 million, reflecting differences in the relative valuations of the two contributed businesses.
Strategic rationale
Both carriers framed the deal as a response to the growing complexity facing multinational clients amid cloud migration and the adoption of artificial intelligence. By combining global scale with infrastructure built to support local compliance and data sovereignty requirements, the venture aims to create a stronger platform for growth and accelerate the rollout of next-generation connectivity.
The deal also allows each parent company to sharpen its domestic focus. BT has been executing a UK-centric strategy, while Verizon continues to prioritize its core American consumer and enterprise markets.
BT Group Chief Executive Allison Kirkby asserted that the combination would produce a connectivity partner with the reach and investment capacity to compete at the highest level, adding that the announcement marked a major milestone for BT International and a key plank of the company’s broader strategic realignment.
Verizon CEO Dan Schulman said the venture represented the clearest path to serving international customers who demand seamless, secure connectivity across borders and cloud environments, while affirming that Verizon’s direct relationship with those clients in the United States would remain intact.
Leadership and structure
Martijn Blanken has been appointed CEO-designate of the new joint venture, conditional on the transaction closing. Blanken brings nearly three decades of senior leadership experience across telecoms, technology, and digital infrastructure, having held roles at Telstra, KPN, EXA Infrastructure and Openwave Systems across four continents. He is set to join BT from September 1, 2026, working alongside both parent companies as they prepare for launch while observing applicable regulatory requirements.
In the interim, Clive Selley will remain at the helm of BT International to ensure continuity during the transition period.
The new entity will be incorporated in the Bailiwick of Jersey and will be headquartered and tax-resident in the United Kingdom. Upon closing, it will establish formal commercial relationships with both BT and Verizon to deliver end-to-end cross-border services, including for BT’s UK customers and Verizon’s US base.
Regulatory path
The transaction is expected to close in 2027, subject to regulatory clearances and customary closing conditions. It will also require consultation with employee representatives in jurisdictions where such obligations apply. Until that point, both BT International and Verizon’s international unit will continue to operate independently.
Goldman Sachs served as lead financial adviser to BT, with Deloitte acting as transaction services adviser and Freshfields LLP providing legal counsel. Morgan Stanley advised Verizon, with Kirkland & Ellis as legal counsel.
The announcement comes as the global telecom sector faces mounting pressure to consolidate international operations, amid rising infrastructure costs and intensifying competition from cloud-native network providers. Analysts are expected to scrutinize the deal’s regulatory prospects, particularly in jurisdictions with heightened sensitivity around data sovereignty and foreign participation in critical communications infrastructure.
BT Group is listed on the London Stock Exchange. Verizon Communications trades on the NYSE and NASDAQ under the ticker VZ. Image credit: BT Media Image Library
