BT Group and Verizon to merge international units in $4bn JV

BT Group and Verizon Communications have agreed to combine their international enterprise operations into a 50:50 joint venture, in one of the largest structural moves in the global enterprise connectivity market in years. The new entity will serve more than 3,000 customers across more than 180 countries and is expected to carry approximately $4 billion in combined annual revenue. Verizon has agreed to pay BT a $625 million equalisation payment to reflect the relative contributions of the two businesses.

The deal brings together BT International, which provides secure networking and communications services to multinationals headquartered outside the UK, with Verizon's international enterprise wireline arm. The new entity will be incorporated in the Bailiwick of Jersey and headquartered and tax resident in the United Kingdom. Both parent companies retain equal voting rights and will maintain separate domestic operations, with the joint venture establishing commercial supply relationships back to each.

Martijn Blanken has been named chief executive officer-designate of the new company, subject to the transaction closing. Blanken brings nearly three decades of senior experience across telecommunications and digital infrastructure, with stints at Telstra, EXA Infrastructure and KPN. He joins BT from 1 September 2026 to begin preparation work ahead of the anticipated 2027 completion, which remains conditional on regulatory clearances and employee consultation in relevant jurisdictions.

The strategic rationale

Allison Kirkby, chief executive of BT Group, framed the deal as consistent with the company's shift towards a UK-focused domestic strategy, freeing the parent to concentrate on Consumer, Business and Openreach while the joint venture pursues scale internationally. Dan Schulman, chief executive of Verizon, said the combined platform would offer multinational clients "secure, flexible connectivity that works seamlessly across borders and cloud environments," adding that Verizon's direct US customer relationships remain unchanged.

Both executives highlighted alignment with AI-era enterprise requirements. Multinationals are increasingly demanding network architectures that integrate with cloud platforms, support low-latency inference workloads and meet localised data sovereignty obligations simultaneously. A joint venture with operations spanning 180 countries is positioned, the companies argue, to deliver that combination more efficiently than either could alone.

Market context and regulatory path

The enterprise connectivity market is in a period of consolidation driven by two countervailing pressures. On one side, the capital cost of maintaining a globally diverse network estate has climbed sharply as customers demand software-defined, AI-integrated and sovereign-compliant infrastructure. On the other, hyperscalers are encroaching on connectivity from above, bundling private connectivity and SD-WAN capabilities into their cloud platforms. Telcos with sub-scale international footprints are increasingly vulnerable to being commoditised into pure-transport providers.

A combined $4 billion revenue vehicle with 3,000-plus enterprise clients creates a more credible counterweight to both hyperscaler bundling and pure-play managed service competitors. However, regulatory scrutiny is a genuine variable. The transaction spans the UK (where the Competition and Markets Authority will be a key examiner), the European Union (European Commission review likely given the breadth of EU-country operations), and potentially the US Department of Justice, depending on how the Verizon wireline transfer is structured. Regulatory timelines in multi-jurisdictional telco transactions routinely stretch deal closings; the 2027 target should be read as a floor rather than a firm date.

Near-term milestones

BT's existing CEO of BT International, Clive Selley, will continue to lead that unit through its transformation until the joint venture closes, ensuring customer continuity. Goldman Sachs advised BT, while Morgan Stanley acted for Verizon.

Investors will be watching for three signals over the coming 12 months: the pace of regulatory submissions and any remedies demanded, the first named enterprise customers to signal commitment to the combined platform, and how each parent accounts for the joint venture on its balance sheet once transaction accounting is settled.