BT and Verizon sign 50:50 enterprise JV agreement

BT Group and Verizon Communications Inc. signed an agreement to combine their international enterprise operations into a 50:50 joint venture, the companies announced.

The proposed joint venture will combine BT International with Verizon's international enterprise wireline business. The companies said the business will focus on multinational organisations and is expected to serve more than 3,000 customers across more than 180 countries, with approximately $4 billion in combined annual revenue.

BT and Verizon said they will each hold equal voting rights in the new company, and Verizon agreed to pay BT an equalisation payment of $625 million. The companies said the transaction remains subject to regulatory clearances and consultation with employee representations in countries where required. Until the deal closes, BT and Verizon said their international businesses will continue to operate independently.

BT and Verizon also said Martijn Blanken has been appointed chief executive officer-designate of the joint venture, subject to completion of the transaction. The companies said Blanken will join BT from 01 September to work with both parent companies as they prepare for the launch of the proposed joint venture. BT said Clive Selley will remain CEO of BT International, while Verizon said its leadership remains unchanged.