TalkTalk is to sell a slice of its business to Daisy Group in a £175m deal.
The transaction means Daisy, a privately owned telecoms company, will acquire 80,000 business customers.
TalkTalk will formally announce the transaction today as it reveals annual results, Sky News reported.
The company has been striving to simplify its operations, as it tries to get a foothold in the market.
Shares tanked in February as the company reduced its dividend for the second time in a year, downgrading expectations for profits to £235m from £280m.
The firm has been forced to cut prices to compete with rivals BT, Sky and Virgin Media