BT is joining forces with Verizon to create a new business serving more than 3,000 enterprise customers in over 180 countries.
The 50:50 joint venture will see the assets and operations of BT International combined with Verizon’s international enterprise wireline arm. Both firms will hold equal voting rights and Verizon will pay BT an equalisation payment of $625 million.
The new joint venture will be incorporated in the Bailiwick of Jersey and headquartered and tax resident in the United Kingdom.
On completion of the transaction, which is subject to various regulatory approvals, the joint venture will establish commercial relationships with both BT and Verizon, enabling it to provide “a seamless, end-to-end service across borders”.
The two firms describe the business, which is expected to enjoy $4 billion in combined annual revenue, as being “designed specifically for a cloud-first world in the age of AI”.
They add that by “combining global scale with infrastructure designed and built to support local compliance and sovereignty needs, the joint venture will create a stronger platform for growth and accelerate the rollout of next-generation connectivity platforms.”
Martijn Blanken has been appointed Chief Executive Officer-designate of the new joint venture. In the meantime, Clive Selley will continue to lead BT International as CEO, ensuring continuity of the unit’s ongoing transformation in readiness for the creation of the joint venture.
The creation of the joint venture allows both parent companies “will be better able to focus on their domestic markets.”
Allison Kirkby, Chief Executive of BT Group, said: “The world’s leading brands and international organisations trust BT International to connect them across the world.
“Bringing together this expertise and heritage with Verizon’s deep relationships with multinationals will create a stronger, scaled connectivity partner – one that has the reach, innovation and investment to succeed.
“Customers will benefit from new, secure and resilient connectivity platforms, which are designed for the age of AI and sovereign where it matters. It will create new opportunities for our people and long-term value for our owners.
“Today’s announcement marks a major milestone for BT International, and an important step forward for BT as a whole, as we deliver on our UK-focused strategy.”
Dan Schulman, CEO of Verizon, added: “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 U.S.”