BT and Verizon to Form $4 Billion Global Enterprise Connectivity Joint Venture (BT.A)

BT Group (LSE:BT.A) and Verizon (NYSE:VZ) have agreed to combine their international enterprise businesses into a new 50:50 joint venture expected to generate around $4 billion in annual revenue. The venture will serve more than 3,000 multinational customers across over 180 countries by bringing together BT International’s expertise in secure communications with Verizon’s international wireline operations to create a next-generation platform designed for AI, cloud and advanced connectivity services.

Under the agreement, both companies will retain equal voting rights, with Verizon making a $625 million equalisation payment to BT. The transaction allows each business to sharpen its focus on domestic operations while benefiting from greater scale and efficiency across their global enterprise networks. Martijn Blanken has been appointed CEO-designate of the new company, which aims to accelerate the deployment of secure, compliance-focused connectivity solutions and expand sovereign-ready services for multinational organisations. Subject to regulatory approvals, the transaction is expected to complete in 2027.

BT’s investment outlook remains supported by resilient underlying financial performance, including solid operating cash flow and EBITDA generation. However, revenue growth has remained subdued, leverage remains elevated and free cash flow has come under pressure. Progress on the company’s transformation programme and management’s strategic guidance provide positive support, although valuation remains relatively demanding based on its price-to-earnings multiple, while technical indicators are broadly neutral to slightly negative.

More about BT Group plc

BT Group plc is one of the UK’s largest telecommunications companies, providing fixed-line, mobile, broadband and enterprise network services to consumers, businesses and public sector organisations. Through BT International, the group delivers secure global connectivity and communications services to multinational enterprises.

Verizon Communications Inc. is a leading US telecommunications and technology company offering wireless, wireline and enterprise connectivity solutions. Its international business provides secure networking, cloud connectivity and digital infrastructure services to corporate customers operating across global markets.