BT Group and Verizon form $4B joint venture in international connectivity push

BT Group and Verizon agreed to combine their international enterprise operations into a 50:50 joint venture valued at about $4 billion in combined annual revenue, creating a scaled connectivity platform for multinational customers.

"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," said Allison Kirkby, chief executive of BT Group.

The new company will serve more than 3,000 customers across 180-plus countries. Verizon agreed to pay BT a $625 million equalization payment, and both parents will hold equal voting rights. The transaction is expected to close in 2027, subject to regulatory clearances and consultation with employee representatives where required.

The deal allows both companies to focus on their domestic markets — BT on the U.K. and Verizon on the U.S. — while retaining equal ownership of a combined international business. Martijn Blanken, a telecom industry veteran with nearly three decades in senior leadership at Telstra, EXA Infrastructure and KPN, was appointed CEO-designate, effective Sept. 1.

The joint venture will be incorporated in the Bailiwick of Jersey and headquartered in the U.K., with commercial relationships established with both parent companies to provide end-to-end service across borders. Goldman Sachs acted as lead financial advisor to BT, with Deloitte as transaction services advisor and Freshfields LLP as legal counsel. Morgan Stanley & Co. LLC advised Verizon alongside Kirkland & Ellis LLP.

BT adjusted its financial guidance following the announcement, with the International division now reported as a discontinued operation until completion. The company's new FY27 outlook excludes International, projecting adjusted group revenue of 17.1 billion pounds to 17.6 billion pounds and adjusted EBITDA of 8.1 billion pounds to 8.2 billion pounds. Consensus estimates for BT International published June 19 showed FY27 adjusted revenue of 1.82 billion pounds and adjusted EBITDA of 108 million pounds.

The combination creates a stronger competitor in the enterprise connectivity market, where carriers have faced margin pressure from cloud-based alternatives and intensifying competition. By pooling their international networks, BT and Verizon gain scale efficiencies that could improve margins — a dynamic that may pressure other global telecom carriers to pursue similar consolidation strategies. Clive Selley will continue to lead BT International as CEO through the transition, ensuring continuity of operations until the deal closes.

This article is for informational purposes only and does not constitute investment advice.