The Brief: BT Group and Verizon have agreed to combine their international enterprise operations in a new 50:50 joint venture dedicated to multinational connectivity. Once established, the company is expected to serve more than 3,000 customers across over 180 countries, with approximately $4 billion in combined annual revenue.
BT International will contribute its multinational communications and networking business, while Verizon will add its international enterprise wireline operations. Moreover, the agreement includes a $625 million equalization payment from Verizon to BT as well, with equal voting rights maintained by both companies.
The transaction is expected to be completed in 2027, subject to regulatory approvals and customary closing conditions, and Martijn Blanken will serve as Chief Executive Officer-designate.
Analyst Perspective: Many multinational enterprises are reassessing how they purchase connectivity as business applications become increasingly distributed across public cloud platforms and regional data environments. Creating a dedicated international company gives customers access to an organization built specifically for cross-border networking instead of relying on geographically separated operations.
The ongoing role of both parent companies is also very important since BT and Verizon will continue serving customers in their home markets while contributing to the success of the new international organization. This lets long-standing customer relationships continue without affecting domestic service delivery.
Another thing is that the arrangement also creates opportunities to standardize service development across international markets. Having a unified operating model can accelerate deployment of networking innovations and strengthen operational consistency, which then gives enterprise IT teams a more predictable experience when managing communications across various countries.
The new joint venture will bring BT International and Verizon's international enterprise wireline business into a single organization serving multinational customers. Upon completion, the company is expected to provide connectivity services to approximately 3,000 enterprise customers across more than 180 countries.
BT and Verizon will each retain equal ownership and voting rights, while Verizon will make a $625 million equalization payment to BT. The venture will be incorporated in the Bailiwick of Jersey and headquartered and tax resident in the United Kingdom.
In addition, the new company will establish commercial relationships with both parent organizations following the transaction, which will let customers in the United Kingdom, the United States, and international markets benefit from coordinated domestic and cross-border connectivity services.
The new organization is being developed for enterprises operating in cloud-first environments where AI applications continue to drive greater networking demands. It is designed to deliver secure and resilient connectivity while addressing regional compliance obligations and data sovereignty requirements.
Organizations with operations across multiple jurisdictions often need networking services that balance performance, security, and regulatory compliance. BT and Verizon expect the combined international business to meet these needs while accelerating the rollout of next-generation connectivity capabilities.
By drawing on both companies' experience in enterprise networking, communications services, and global infrastructure, the venture will offer multinational customers access to a broader portfolio through a dedicated provider supporting cross-border operations.
With the transaction moving toward regulatory review, BT Group and Verizon have also outlined the leadership team for the future organization.
Martijn Blanken has been appointed Chief Executive Officer-designate and is expected to assume the position once the transaction closes. His experience includes senior leadership roles across telecommunications, digital infrastructure, and technology companies serving international markets.
Beginning September 1, he will work alongside both parent organizations during preparations for the joint venture.
Meanwhile, Clive Selley will continue overseeing BT International during the transition to ensure continuity across the business, and Verizon will maintain its existing enterprise leadership. Until the required regulatory approvals, employee consultations, and customary closing requirements are completed, both businesses will continue operating independently.
Closing is anticipated during 2027.
Large organizations that operate in multiple countries need networking providers that deliver reliable service across all locations while supporting cloud computing, cybersecurity, AI applications, and changing regulatory requirements.
BT and Verizon already have extensive experience serving enterprise customers, which makes this joint venture a logical extension of their existing international capabilities, and creating a dedicated organization allows each parent company to continue concentrating on domestic operations while maintaining international enterprise relationships through a shared business.
Executing an international telecommunications transaction of this size introduces operational complexity because integrating platforms, customer support processes, and service portfolios across multiple countries requires careful coordination.
Plus, it’s very important to maintain an uninterrupted customer experience throughout regulatory approval and operational integration.
That’s why clear governance, transparent communication, and phased migration plans can reduce disruption while preserving customer confidence.
Demand for secure international connectivity continues to increase as enterprises distribute applications across cloud environments and expand digital operations globally.
If the new company successfully combines the technical expertise, customer relationships, and operational resources contributed by BT and Verizon, it could become an attractive option for multinational organizations seeking a single provider for international enterprise networking.
Continued investment in AI-ready infrastructure, security capabilities, and compliance services will likely influence how competitive the business becomes after operations formally begin.
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