British telecommunications company BT and U.S.-based Verizon have agreed to combine their international operations in a new joint venture expected to generate about $4 billion in annual revenue.

The partnership will serve more than 3,000 multinational business customers across approximately 180 countries.

The agreement marks a major restructuring for both companies as they seek to strengthen their enterprise communications businesses.

Verizon will make a balancing payment to ensure equal ownership, while the new company will be headquartered in the United Kingdom.

Executives from both firms said the partnership will focus on secure global connectivity, artificial intelligence-ready digital infrastructure and advanced communication services for multinational corporations.

The venture is expected to improve operational efficiency while expanding international capabilities.

Industry observers believe the deal reflects growing consolidation within the global telecommunications sector as companies respond to increasing customer demand for integrated digital services.

Businesses are investing heavily in cloud computing, cybersecurity and AI-enabled communications.

The transaction remains subject to regulatory approval but is expected to strengthen both companies’ competitive positions in the rapidly evolving enterprise technology market.

Source: The Guardian