BT Group and Verizon Communications, two of the telecoms sector’s most established international enterprise operators, have agreed to will join forces in a bid to capitalize on the cloud and AI enterprise markets in the US and UK. With approximately US$ 4 billion in combined annual revenue and customers across more than 180 countries, the venture represents a notable reshaping of the international enterprise connectivity landscape.
The two firms will be combining their respective international enterprise operations in a 50/50 joint venture where both hold equal voting rights. Verizon has agreed to pay BT an equalization payment of US$ 625 million as part of the agreement announced in a press release. The firms expect the transaction to be complete in 2027.
“Customers will benefit from new, secure and resilient connectivity platforms, which are designed for the age of AI and sovereign where it matters,” said Allison Kirkby, Chief Executive, BT Group.
The executive added that the agreement is a major milestone for BT International and a step forward for the wider group, supporting its UK-focused strategy.
The joint venture will focus on serving multinational organizations and is expected to serve more than 3,000 customers.
“Our international customers require secure, flexible connectivity that works seamlessly across borders and cloud environments. When we thought about how to best support them, this joint venture was the clear answer: a cutting-edge, AI-ready and secure platform run by a single global organization dedicated to their needs. At the same time, our relationship with those customers will stay equally strong as we continue to directly provide them with the connectivity they need in the US,” said Dan Schulman, Chief Executive Officer, Verizon.
The venture is still subject to regulatory clearances and consultation with employee representations in countries where required. The joint venture will establish commercial relationships with both BT and Verizon, with BT continuing to serve UK customers and Verizon the US. The joint venture will be incorporated in the Bailiwick of Jersey and headquartered and tax resident in the United Kingdom. Until the transaction is officially closed, the firms will continue to operate independently.
BT Group and Verizon added that Martijn Blanken has been appointed Chief Executive Officer-designate of the joint venture, conditional on the closing of this agreement. He will join BT on September 1 2026 and work with both companies, in line with regulatory requirements, to prepare for the launch of the joint venture.