BT Group PLC (LON: BT.A) and Verizon Communications have agreed to combine their international operations into a new 50:50 joint venture, creating a global connectivity business with approximately US$4 billion in annual revenue serving more than 3,000 multinational customers across 180 countries.
Under the agreement, Verizon will contribute its international enterprise wireline business, while BT will contribute BT International. Verizon will also make a US$625 million equalisation payment to BT.
The joint venture will be headquartered and tax resident in the UK, incorporated in Jersey, and will focus on delivering secure, cloud-first connectivity solutions for multinational enterprises.
Industry veteran Martijn Blanken has been appointed chief executive-designate, joining BT on 1 September to oversee preparations ahead of the transaction’s expected completion in 2027, subject to regulatory approvals. BT International chief Clive Selley will continue to lead the business during the transition.
BT chief executive Allison Kirkby described the deal as a significant milestone that strengthens the company’s focus on its UK operations while creating a larger, more competitive international connectivity provider. Verizon chief executive Dan Schulman said the partnership would provide multinational customers with more secure and flexible cross-border networking solutions while allowing Verizon to remain focused on serving those customers within the United States.
Alongside the announcement, BT updated its financial guidance to reflect the separation of its international business, which will now be treated as a discontinued operation until completion.
Group revenue guidance for FY2027 has been revised to £17.1 billion-£17.6 billion, from the previous £19.0 billion-£19.5 billion, while adjusted EBITDA is now expected to reach £8.1 billion-£8.2 billion, compared with prior guidance of £8.2 billion-£8.3 billion.
Capital expenditure guidance has been trimmed slightly to £4.2 billion-£4.3 billion, although normalised free cash flow remains unchanged at around £2.0 billion, and BT reiterated its intention to deliver low to mid-single-digit annual dividend growth.
The group also reaffirmed its longer-term objectives, including sustained revenue growth, EBITDA increasing ahead of UK service revenue, and normalised free cash flow rising to around £3 billion by the end of the decade.
Shares in BT rose around 1.3% in early trading following the announcement.
