BT and Verizon create $4bn joint venture

The partnership targets multinational clients.

Telecom giants BT and Verizon have agreed to combine their international enterprise businesses into a 50:50 joint venture, creating a global connectivity provider with approximately $4 billion in annual revenue and more than 3,000 multinational customers across 180 countries.

Under the agreement, Verizon will make a $625 million equalization payment to BT, with both companies holding equal voting rights in the new venture, according to a recent Reuters report.

The transaction, which is expected to complete in 2027 subject to regulatory approvals, will be led by former Telstra and KPN executive Martijn Blanken.

For BT, the deal represents another significant step in CEO Allison Kirkby's strategy to streamline the group and refocus on its core UK operations.

Verizon, meanwhile, gains greater international scale without the cost and execution risks associated with a full acquisition.

The combined business will focus exclusively on serving multinational enterprises with secure networking, cloud connectivity, and AI-ready communications infrastructure, an increasingly competitive segment as businesses expand their global digital operations.

With fragmentation a common theme in the global enterprise telecoms market, shareholders will be looking for evidence that the enlarged international platform can compete more effectively.

The deal also highlights a changing approach to corporate expansion.

In an environment of higher financing costs and greater scrutiny of large acquisitions, strategic joint ventures can provide a path to scale and operational efficiencies without the burdens of financial and integration risk expected with a traditional takeover.

BT Group’s stock was trading at GBP19.15 at 14:25 on Tuesday in London, down 2.4% from Monday’s close. The stock is down 3.8% year-to-date.

Meanwhile, Verizon’s stock was trading at $43.73 at 9:42 on Tuesday in New York, down 0.8% from the day before. Verizon’s stock is up 7.3% year-to-date.

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