BT and Verizon to create joint global business in $625m deal

BT and Verizon have agreed to combine their international telecoms businesses in a 50:50 joint venture, in a move that would reshape both companies' exposure to global enterprise services.

Verizon will pay BT a $625 million equalisation fee as part of the transaction. The companies said the structure is designed to preserve equal ownership and voting rights in the new business.

The venture is expected to be incorporated in Jersey and headquartered and tax resident in the UK. It will bring together BT’s international arm with Verizon’s international operations under one company.

The combined business is expected to serve more than 3,000 customers in about 180 countries and generate about $4 billion in annual revenue.

BT's international reset

BT has been looking for a way to restructure or sell its international unit for more than 18 months. The joint venture gives it a path to reduce direct exposure to that business without pursuing an outright disposal.

Chief executive Allison Kirkby has been pushing a UK-focused strategy and broader cost cuts. BT said the deal is an important step in that plan.

BT also said its international division will be treated as a discontinued operation. That means it will be excluded from fiscal 2027 guidance.

The company lowered its fiscal 2027 outlook after the announcement, cutting adjusted revenue guidance to £17.1 billion-£17.6 billion and adjusted EBITDA guidance to £8.1 billion-£8.2 billion.

What Verizon gains

For Verizon, the transaction expands its reach in international wireline and enterprise services. The company has been seeking more scale for multinational and cross-border customers while managing cost pressure.

Verizon said the venture will provide a secure, AI-ready platform for international customers. The deal gives it a larger footprint without requiring full ownership of BT’s international assets.

The transaction also fits a broader telecom pattern in which operators use joint ventures to share risk, preserve strategic optionality and build scale across borders.

Leadership, approvals and next steps

Martijn Blanken, a former Telstra executive, has been named chief executive designate of the new company. The venture does not yet have a public name.

Until completion, BT and Verizon said their international businesses will continue to operate independently. That means customers and employees should not see the businesses merged immediately.

The deal still needs regulatory clearances and employee consultations in some countries. Those approvals and consultations could affect timing.

BT and Verizon said the transaction is expected to complete in 2027. Investors will be watching for more detail on integration, branding and the final close date.

For BT, the deal deepens its move back toward the UK market. For Verizon, it creates a bigger platform for serving multinational customers across regions while limiting the need to buy the business outright.