BT-owned e-commerce outfits Dabs.com, BT Business Direct and BT Engage IT will all be combined into a single new IT services arm.
The merger of the standalone business will form a £400m IT services business, according to a MicroScope report.
"The new entity will deliver IT services to the entire spectrum of BT Business customers. It will allow BT Retail to work more effectively as one team across its customer base and across the different businesses," BT announced in a statement.
The move is also aimed at enhancing BT Retail's purchasing power and "providing better utilisation of assets and skills between the businesses," the firm said.
Engage IT chief Martin Balaam to step down from the top job while former Dabs and BT Retail boss John Thornhill will now head up merged business.