Broadband and telecoms supplier Carphone Warehouse is set to sell half of its retail arm to a US bidder.
The company - which owns AOL Broadband - is reported to have accepted an offer of £1.1 billion from Best Buy, the world's largest electronics retailer.
It is expected that the move will create a powerful new force in the UK and European electronics market, the BBC reports.
Some analysts also predict that Carphone Warehouse will use some of the money to purchase rival broadband firm Tiscali.
Charles Dunstone, Carphone Warehouse's founder and chief executive, said that the group intended to establish a presence in Europe similar to that enjoyed by Best Buy in the US, where it operates from 40,000 sq ft superstores.
Tiscali has received much attention in recent months as speculation has arisen over a number of potential buyers. Reuters reported recently that BSkyB would "take a look" at making a bid for the Italian group.