- BT and Verizon are forming a joint venture to create a scaled international connectivity platform for multinational customers, with a combined annual revenue of approximately $4 billion.
- Verizon will pay a $625 million equalisation fee to BT to ensure equal voting rights in the new 50/50 joint venture.
- The joint venture will be headquartered in the United Kingdom and is expected to complete in 2027, pending regulatory clearances.
- This joint venture marks the end of BT's more than 18-month search for a buyer for its international business.
- The new company is expected to serve more than 3,000 customers across 180 countries.
- Both companies emphasize that the venture will provide secure and resilient connectivity to meet customers' data, operational, and regulatory requirements.
BT and Verizon have formed a joint venture valued at $4 billion, combining their international operations to enhance connectivity for multinational customers. The new entity, which will be headquartered in the UK, aims to serve over 3,000 clients across 180 countries and generate approximately $4 billion in annual revenue.128
Verizon will pay a $625 million equalization fee to ensure both companies maintain equal voting rights in the 50/50 partnership. This strategic move marks the end of BT's 18-month search for a buyer and is seen as a significant step in its UK-focused strategy, according to Allison Kirkby, Chief Executive of BT Group, who stated, 'Bringing together this expertise and heritage with Verizon’s deep relationships with multinationals will create a stronger, scaled connectivity partner.'347
The joint venture is designed to provide secure and resilient connectivity tailored to meet the data, operational, and regulatory needs of its customers. Dan Schulman, CEO of Verizon, emphasized the venture's focus on delivering a 'cutting-edge, AI-ready and secure platform' for international clients.9
The transaction is expected to finalize in 2027, pending regulatory approvals and customary closing conditions. Martijn Blanken has been appointed as the Chief Executive Officer-designate of the new venture.56
This collaboration is anticipated to significantly enhance the service offerings of both companies in the global telecommunications market.
“BT and Verizon are combining their international operations in a 50:50 joint venture, expected to generate $4bn in annual revenue. The deal aims to enhance secure and resilient connectivity for over 3,000 customers across 180 countries.”
The Guardian
