Verizon will pay BT an equalisation payment of $625m for the joint venture.
UK’s BT Group and US’ Verizon have decided to combine their international units into a joint venture aimed at multinational connectivity. The parent companies would be better able to focus on their domestic markets, while providing support to the new venture, they said.
The 50:50 joint venture between the communication giants will serve more than 3,000 customers across 180 countries, representing some $4bn in combined annual revenue. Verizon will pay BT an equalisation payment of $625m, the companies said in a joint statement.
The two companies aim to support local compliance and sovereignty needs with their joint venture. Customers are promised “secure and resilient” connectivity, designed for data, operational and regulatory requirements.
The joint venture will be led by Martijn Blanken; former CEO at Neo Space Group and Exa Infrastructure, and a current non-executive director at the Cordiant Capital-owned Irish investment vehicle Speed Fibre Group.
