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

BT and Verizon have agreed to combine their international enterprise businesses in a 50:50 joint venture, in a deal that ends BT's long search for a buyer for the unit and gives Verizon a bigger role in global enterprise connectivity.

Verizon will pay BT a $625 million equalisation fee to establish the shared ownership structure. The new business is expected to serve more than 3,000 customers in about 180 countries and generate about $4 billion in annual revenue.

The agreement was reported on Monday and follows more than 18 months in which BT had been looking for a buyer for its international arm. Rather than selling the business outright, BT has opted to fold it into a joint venture while both groups keep their operations running separately until the transaction closes.

BT's strategic shift

BT's move fits a broader plan to refocus on the UK market. Chief executive Allison Kirkby has been steering the group away from lower-return international operations and toward its domestic broadband and mobile business.

The Wall Street Journal said BT will classify the international division as a discontinued operation, and it also reported that the company has revised its fiscal 2027 guidance downward after announcing the deal. BT now expects adjusted revenue of £17.1 billion to £17.6 billion and adjusted EBITDA of £8.1 billion to £8.2 billion.

That guidance cut suggests the accounting impact is immediate, even though the transaction is not yet complete. The deal gives BT a cleaner corporate structure and cash equalisation payment while reducing its direct exposure to the international enterprise unit.

Scale and structure

The new venture will bring together BT and Verizon's international enterprise capabilities under shared control. It is expected to be led by Martijn Blanken, who previously worked at Telstra.

According to the Financial Times, the joint venture will be incorporated in Jersey and headquartered and tax resident in the UK. The FT also said BT's international unit employed more than 8,000 people before the carve-out.

For multinational customers, the immediate message is continuity. The companies said their international operations will continue to run independently until completion, which is expected in 2027.

Approvals and next steps

The deal still needs regulatory approvals and employee consultations before it can close. Those processes will determine whether the structure proceeds as announced or needs changes along the way.

The main open questions now are practical rather than strategic: how regulators in the UK and other markets respond, what the consultation process means for staff across the international business, and whether BT makes any further changes to its remaining overseas footprint after completion.

For Verizon, the agreement expands its international enterprise reach without a full acquisition. For BT, it marks a decisive exit from a long-running search for a buyer and a sharper turn back toward its home market.