BT and Verizon, the largest telecommunications firms in the UK and US, have agreed to combine their international enterprise operations in a 50:50 joint venture, creating a $4bn global connectivity business aimed at meeting rising demand for cloud and AI-enabled services.

The new company will bring together BT International and Verizon’s international enterprise wireline operations, serving more than 3,000 multinational customers across over 180 countries with combined annual revenue of around $4bn (£3bn). Verizon will make a $625m equalisation payment to BT as part of the deal.

BT shares rose between 1.2% and 2% on the news to lead the FTSE 100 at one point as markets responded positively to the strategic refocus and the additional payment from Verizon.

BT said the transaction supports its strategy of increasing focus on the UK market while retaining international exposure through joint ownership of the new entity. The venture is intended to provide secure, resilient connectivity services while helping customers meet local regulatory and data sovereignty requirements.

Martijn Blanken has been appointed CEO-designate of the new business, subject to completion. He brings almost three decades of leadership experience across telecommunications and digital infrastructure and will join BT in September to support preparations for launch. Clive Selley will continue leading BT International during the transition.

BT Group CEO Allison Kirkby said: “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."

BT also updated its FY27 and medium-term financial guidance, although the changes primarily reflect accounting treatment. Once the transaction completes, BT International will be removed from the group’s consolidated reporting and BT will instead account for its share of the venture’s profits using the equity method. The telco said underlying strategy and cash flow expectations remain unchanged.

BT reported £19.7bn in revenue for FY26, while Verizon latest annual revenue for the year ended 31 December 2025 stood at $138.2bn.

The joint venture will be incorporated in Jersey, headquartered and tax resident in the UK, with completion expected in 2027 subject to regulatory approvals and customary closing conditions.

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