Online retailer The Hut Group is set to receive £100m for a 20% stake in the company from Boots owner and private equity firm KKR.
The deal will value the Manchester-based etailer at £500m.
The move comes two months after The Hut ruled out an IPO, following the poor post-float performance of other companies that came to market this year.
The Hut Group chief executive Matthew Moulding owns 17% of the business and is understood to be increasing his share to 20% of the company as part of the deal, according to The Sunday Times.
Other investors in The Hut include former Tesco chief executive Sir Terry Leahy and former M&S boss Sir Stuart Rose.