BT, Verizon to combine international units in joint venture

LONDON

British telecom group BT and U.S. mobile operator Verizon announced Monday an agreement to combine their international operations serving corporate clients into a joint venture with combined annual revenue of around $4 billion.

Verizon has agreed to pay BT $625 million as part of the deal, and both companines will hold equal voting rights in the venture, the companies said in a statement.

BT chief executive Allison Kirkby has focused the company on its home UK market as the struggling international unit has weighed on growth in recent years.

The new company, headquartered in Britain, will have more than 3,000 customers across 180 countries.

Verizon chief executive Dan Schulman said the deal would deliver "secure, flexible connectivity that works seamlessly across borders and cloud environments".

The transaction is expected to close in 2027, subject to regulatory approvals.

BT has been undergoing a major restructuring over the past few years, including plans to cut around 40 percent of its workforce by 2030 as part of cost-saving efforts.

Verizon announced last year that it would axe 13,000 jobs amid mounting competition in the United States.