BT and Verizon spin off international networking arms into $4B joint venture
Enterprise networking gets another consolidation play as firms pool their overseas operations
BT and Verizon are putting their international enterprise networking businesses into a 50:50 joint venture, creating a company with roughly $4 billion in annual revenue as both telcos re-focus on the markets that actually make them money.
The proposed venture, announced on Monday, will combine BT International with Verizon's international enterprise wireline business. Once regulators sign off, the new company will serve more than 3,000 multinational customers across 180 countries, while its two parents return their attention to the markets that actually move the needle: Britain for BT and the US for Verizon.
Verizon will pay BT $625 million to balance the relative value of the assets each side is contributing. The transaction is expected to close in 2027.
For BT, the move removes a business that has long looked like the awkward relative in the family photo....
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