BT Group and Verizon Communications signed an agreement on Monday, June 29, 2026, to merge their international enterprise operations into a 50:50 joint venture.
The deal creates a scaled connectivity platform designed for the cloud and artificial intelligence era.
The new combined entity will serve more than 3,000 corporate customers across approximately 180 countries.
The venture is expected to generate an annual revenue of around $4 billion, unlocking extensive scale efficiencies across their global networks.
Financial and Structural Details
Under the terms of the agreement, Verizon will make a $625 million equalization payment to BT Group to ensure equal voting rights.
The new business will be incorporated in the Bailiwick of Jersey while maintaining its headquarters and tax residency in the United Kingdom.
The move allows both telecommunications giants to narrow their focus on domestic operations while continuing support as equal shareholders.
BT Group has been systematically divesting its international assets over the past decade following an accounting scandal at its Italian unit.
"The world's leading brands and international organisations trust BT International to connect them across the world," said Allison Kirkby, Chief Executive of BT Group.
"Bringing together this expertise and heritage with Verizon's deep relationships with multinationals will create a stronger, scaled connectivity partner."
Kirkby has spearheaded an aggressive multi-billion-pound cost-cutting program since taking the helm in early 2024, aiming for £3.7 billion in savings by 2030.
The consolidation follows previous asset sales, including BT's Irish wholesale business and its U. S.
government contracting subsidiary.
"Our international customers require secure, flexible connectivity that works seamlessly across borders and cloud environments," said Dan Schulman, CEO of Verizon.
"When we thought about how to best support them, this joint venture was the clear answer."
Verizon has similarly engaged in severe corporate streamlining, which included an initiative to eliminate roughly 13,000 positions across its wider organization to decrease operational friction.
The newly formed entity will be led by Chief Executive Officer-designate Martijn Blanken, who is scheduled to join BT on September 1, 2026, to oversee launch preparations.
The transaction is projected to formally close sometime in 2027, subject to customary regulatory clearances and consultations with employee representatives.
