Telecom majors, BT Group plc and Verizon Communications Inc., have come together to combine their respective international enterprise operations into a 50:50 joint venture, with a view to creating a connectivity platform for multinational customers.
The British telecom major also trimmed its fiscal 2027 outlook to reflect BT International division to be reported as a discontinued operation following the JV deal. However, the firm maintained mid-term guidance of sustained growth in adjusted EBITDA and revenues.
BT shares were gaining around 1.13 percent in London, at 197.20 pence, while Verizon shares were losing 3.7 percent on the NYSE, trading at $44.81.
In a statement, the companies announced that BT International will be combined with Verizon's international enterprise wireline arm, which provides secure connectivity to enterprises worldwide.
Both BT and Verizon will hold equal voting rights and Verizon has agreed to pay BT an equalisation payment of $625 million.
The JV formation is expected to complete in 2027, subject to regulatory clearances and other customary closing conditions. Until the deal closure, BT and Verizon's international businesses will continue to operate independently.
BT and Verizon have also confirmed that Martijn Blanken has been appointed Chief Executive Officer-designate of the new joint venture, conditional on the completion of the transaction. He will join BT from September 1, and will work with both parent companies.
Clive Selley will continue to lead BT International as CEO. Verizon's leadership remains unchanged.
It is expected that the combination of international networking businesses would create a new platform designed for the age of cloud and AI. The JV will serve more than 3,000 customers across more than 180 countries, representing around $4 billion in combined annual revenue.
In addition, the JV is expected to help the parent companies to better focus on their domestic markets, while providing support to the new joint venture as equal shareholders.
Separately, BT said that it has revised down its annual guidance to reflect the planned exclusion of BT International division, which will be treated as discontinued operations following the JV deal with Verizon.
On a continuing operations basis, excluding BT International, BT Group now expects fiscal 2027 adjusted EBITDA of £8.1 billion to £8.2 billion, compared with the earlier outlook, which includes BT International, of £8.2 billion to £8.3 billion.
BT Group now expects adjusted revenue of £17.1 billion to £17.6 billion excluding BT International, compared with the earlier expectation of £19 billion to £19.5 billion including the international unit.
For fiscal 2026, the company had reported adjusted EBITDA of £8.2 billion, on adjusted revenue of £19.6 billion.
For BT International, company compiled consensus estimates for fiscal 2027 as of June 19 include adjusted EBITDA £108 million and adjusted revenue of 1.82 billion pounds.
Excluding BT International, the Group now anticipates capital expenditure, which also excludes spectrum, of £4.2 billion to £4.3 billion, compared with the earlier outlook, which includes BT International, of around £4.3 billion.
BT Group, however, reaffirmed its annual total dividend growth guidance and still expects low-to-mid-single-digit growth.
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September 04, 2026 15:08 ET The job report and foreign trade data were the main economic news from the U.S. in the first week of September. Elsewhere in North America, the Canadian central bank announced its latest policy decision. Inflation data from Eurozone was the highlight in Europe. The latest interest rate decision by the Reserve Bank of New Zealand drew attention in Asia.