BT Group and Verizon Form 50:50 Joint Venture to Serve 3,000 Global Customers

2026-06-29 · By FreeTimes.com News Team

BT Group plc and Verizon Communications Inc. announced on Monday that they will combine their international enterprise operations into a 50:50 joint venture. The new company will focus on multinational connectivity and is expected to serve more than 3,000 customers in over 180 countries, with combined annual revenue of about $4 billion.

The joint venture will bring together BT International, which provides secure and resilient communication and network services for multinational customers, and Verizon’s international enterprise wireline arm, which delivers secure connectivity worldwide. Both parent companies will hold equal voting rights. Verizon has agreed to pay BT an equalisation payment of $625 million to ensure parity.

According to the announcement, the combined business will create a future‑ready, scaled organisation built on a new platform designed for a cloud‑first, AI‑enabled world. The platform will support local compliance and sovereignty requirements, allowing customers to meet data, operational and regulatory needs.

Martijn Blanken has been appointed Chief Executive Officer‑designate of the joint venture, subject to the transaction’s completion. Blanken, who has spent nearly three decades in senior roles across telecommunications and digital infrastructure companies, will join BT on 1 September 2026 and work with both parent companies as they prepare for the launch.

The joint venture will be incorporated in the Bailiwick of Jersey and will be headquartered and tax‑resident in the United Kingdom. On completion, it will establish commercial relationships with both BT and Verizon, providing a seamless, end‑to‑end service across borders, including for BT customers in the UK and Verizon customers in the United States.

The transaction is expected to close in 2027, pending regulatory approvals and other customary closing conditions. Until the deal is finalized, BT International and Verizon’s international businesses will continue to operate independently.

Both companies noted that the joint venture will allow them to focus on their domestic markets while supporting the new entity as equal shareholders. BT’s Chief Executive Allison Kirkby said the partnership would create new opportunities for employees and long‑term value for owners. Verizon CEO Dan Schulman highlighted that the joint venture would deliver a single global organisation dedicated to multinational customers.

Legal and financial advisers for the deal include Goldman Sachs (lead financial adviser to BT), Deloitte (transaction services adviser), Freshfields LLP (legal counsel for BT), Morgan Stanley (financial adviser to Verizon) and Kirkland & Ellis (legal counsel for Verizon).

The joint venture will serve a broad customer base, including government agencies, multinational corporations and other enterprises that require secure, flexible connectivity across borders and cloud environments.

The announcement was made in London and New York. No further details on pricing, service levels or specific customer contracts were disclosed.

The deal is part of a broader trend of consolidation in the telecommunications sector, as companies seek scale and new technology platforms to compete in a cloud‑centric, AI‑driven market.

The joint venture’s formation will also allow the combined network to accelerate the rollout of next‑generation connectivity platforms, potentially benefiting customers with faster, more secure services.

The transaction will be subject to regulatory scrutiny in the United Kingdom, the United States and other jurisdictions where the companies operate. Employees in countries where consultation is required will be engaged as part of the process.

The joint venture’s launch is expected to bring significant operational efficiencies and a stronger platform for growth, according to the companies’ statements.

The companies have not yet provided a detailed timeline for the joint venture’s operational rollout beyond the expected completion in 2027.

The joint venture will operate under a new brand that has not yet been announced.

The deal represents a significant shift for both BT and Verizon, as they move to focus on domestic markets while leveraging the combined international capabilities of the new entity.

The joint venture will be the first major cross‑Atlantic collaboration between a UK‑based telecom and a US‑based telecom in over a decade.

The companies have indicated that the joint venture will maintain the existing service levels for current customers during the transition.

The joint venture will also provide a platform for future investment in emerging technologies such as 5G, edge computing and AI‑driven network management.

The announcement was made without any immediate impact on the share prices of either company, although analysts have noted that the deal could influence future earnings.

The joint venture will be governed by a board composed of equal representatives from BT and Verizon, with operational decisions made by the appointed CEO.

The companies have not disclosed any specific cost savings or synergy targets.

The joint venture will be subject to ongoing regulatory oversight and will need to comply with data protection and privacy laws in all operating jurisdictions.

The joint venture will also be expected to maintain the existing customer support structures of both parent companies.

The companies have not yet released a detailed financial forecast for the joint venture.

The joint venture’s creation is expected to strengthen the global connectivity market and provide a more robust platform for multinational enterprises.

The companies have indicated that the joint venture will be a long‑term investment, with a focus on sustainable growth and innovation.

The joint venture will also be expected to contribute to the broader digital economy by enabling more secure and efficient cross‑border data flows.

The joint venture will be the first major international partnership between BT and Verizon since the companies’ earlier collaboration on the Verizon‑BT joint venture in 2016.