Education secretary Nicky Morgan confirmed that David Hoare will replace Baroness Sally Morgan, who has been chair since 2011.
Mr Hoare was brought in this year to advise the Academies Enterprise Trust, a chain of around 70 academies, but will step down from this role to take on the Ofsted appointment in September.
The Department for Education said that Mr Hoare has been involved in education since he early 1990s, including the early years sector, and more recently as an academies ambassador.
Mr Hoare has held a number of chief executive and chairmanship positions. He is chair of the Teenage Cancer Trust and was previously chair of mail company the DX Group and Virgin Express, and in the 1990s was briefly chief executive of Laura Ashley.
Confirming the appointment, Ms Morgan said that Mr Hoare was ‘a proven business leader who has the expertise in leadership and governance crucial to helping Ofsted through a significant period of change and reform.
‘He is also passionate about education and his work with academies across the country shows he shares my commitment to ever higher standards in our schools for all children, but particularly the most disadvantaged.
‘I am confident that his strong track record in business and the passion he demonstrated throughout the interview process will be of huge benefit to Ofsted. He and Sir Michael Wilshaw will make a superb team.’
Dr Mary Bousted, general secretary of the Association of Teachers and Lecturers (ATL), said, ‘We welcome a new chair of Ofsted into what will be a difficult role.
‘David Hoare has already shown a positive interest in the development of children through his recent work. He quickly needs to address the pressure placed on teachers from the current Ofsted regime, which is in disarray with questionable quality control processes. He also needs to remember that schools are not businesses, and shouldn’t become businesses. We hope Mr Hoare will meet soon with teacher union representatives to talk about the urgent reform of Ofsted.’
The multi-millionaire David Ross, co-founder of Carphone Warehouse and a conservative party donor, had previously been tipped for the position of Ofsted chair.