en.Wedoany.com Reported - BT and Verizon have announced the merger of their respective multinational enterprise service businesses to form a joint venture with each holding a 50% stake. The new company will focus on serving multinational corporations, expected to provide services to over 3,000 clients in more than 180 countries, with combined annual revenue of approximately $4 billion.
The joint venture integrates BT International's communication and network services for global multinational clients with Verizon's international wireline business for enterprises. BT and Verizon will have equal voting rights, and Verizon has agreed to pay BT a balancing compensation of $625 million. The parties expect that the scale effects from the business integration will enhance the operational efficiency of the combined global network and services, with the transaction expected to be completed by 2027.
Verizon CEO Dan Schulman stated that this joint venture will become a cutting-edge, AI-capable, and secure platform operated by a single global organization focused on customer needs. BT Group CEO Allison Kirkby added that combining BT International's experience in serving global brands with Verizon's multinational enterprise relationships can create a connectivity partner with broader coverage, stronger innovation capabilities, and greater investment power.
The transaction benefits international clients, BT, Verizon, and their parent companies. For multinational enterprise clients, the combined global scale and infrastructure designed to meet local compliance and sovereignty requirements will accelerate the deployment of next-generation connectivity platforms. At the same time, the deal allows BT and Verizon to focus more on their respective home markets, both of which are aggressively pursuing large-scale fiber broadband deployment. Verizon recently strengthened its fiber strategy by completing the acquisition of Frontier. This $20 billion deal, announced in September 2024, will enhance its fiber broadband as well as fixed and mobile wireless services. Frontier's 2.2 million fiber subscribers across 25 states will join Verizon's approximately 7.4 million Fios connections in nine states and Washington, D.C.
BT and Verizon are among the world's largest Ethernet service providers. According to Vertical Systems Group's Mid-2025 Global Provider Ethernet LEADERBOARD, they rank third and sixth, respectively, in port share. However, they must also address challenges in the global Ethernet market as enterprise clients migrate traditional networks to cloud and internet-based services, SD-WAN/SSE/SASE, wavelength, and other alternatives. To this end, global carrier Ethernet providers are offering Network as a Service (NaaS) products, which provide clients with on-demand connectivity, application assurance, network security, and multi-cloud networking services within a standards-based automated ecosystem. A key element is delivering a clear message to clients: the combined international entity has broader coverage both domestically (in the UK and US) and internationally.
Martijn Blanken will serve as the CEO-designate of the new joint venture, subject to the completion of the transaction. Blanken has nearly 30 years of senior leadership experience spanning four continents. Starting September 1, 2026, he will join BT and work with both parent companies to prepare for the launch of the joint venture. Meanwhile, Clive Selley will continue to lead BT International as CEO, ensuring its ongoing transformation in preparation for the creation of the joint venture. Verizon's leadership remains unchanged. The transaction is subject to regulatory approvals and, where necessary, consultation with employee representatives. BT and Verizon's international businesses will continue to operate independently until the transaction is formally completed.
