BT and Verizon are creating a new 50:50 joint venture combining their international businesses to provide cross-border connectivity, cloud services and security for multinational customers. Multiple outlets report that the arrangement will serve more than 3,000 customers across about 180 countries. The deal is described as a major milestone for both companies and forms part of BT’s strategy of refocusing on its domestic operations.
Financial Times and other coverage state the transaction is valued at $625 million, with Verizon paying BT an “equalisation” fee of $625 million to ensure equal voting rights in the new venture. The Guardian adds that the joint effort ends BT’s more than 18-month search for a buyer of its international operations. The Guardian also reports that the combined business is expected to generate about $4 billion in annual revenue.
The venture is expected to be headquartered in Britain, according to Free Malaysia Today. Across sources, the core terms focus on the 50:50 ownership structure, the scope of the customer base and geographic footprint, and the $625 million equalisation payment to balance governance.
