BT and VERIZON have agreed to combine their international operations serving corporate clients into a joint venture with annual revenue of about $4 billion, the British telecom group and the US mobile operator announced on Monday.
Under the agreement, Verizon will pay BT $625 million, while both companies will hold equal voting rights in the new venture, according to a joint statement.
BT chief executive Allison Kirkby has been focusing the company on its home UK market, with the international business weighing on growth in recent years.
The new company will be headquartered in Britain and serve 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 carrying out a major restructuring in recent years, including plans to cut around 40 per cent 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.
