BT and Verizon announced on Monday that they will combine their international enterprise operations in a 50:50 joint venture, creating a global business with $4 billion in annual revenue focused on serving multinational customers.
Under the agreement, Verizon will make an equalisation payment of $625 million to BT, while both companies will retain equal voting rights in the new venture.
The joint venture will serve more than 3,000 customers across over 180 countries, providing secure and flexible connectivity for businesses operating internationally.
The deal marks a significant step in BT Chief Executive Allison Kirkby’s strategy to refocus the 180-year-old British telecoms company on its domestic UK market while streamlining its international operations.
Verizon CEO Dan Schulman said the venture would better meet the needs of multinational customers seeking reliable cross-border and cloud-based connectivity.