Private equity firm Carlyle Group has offered around £500m to acquire UK-based insurance software provider Innovation Group.
Innovation has confirmed that is in advanced talks with Carlyle Group over a potential offer that values it at 40p per share.
Innovation offers solutions that support the entire insurance value chain from quote and inception, through first notice of loss, claims and repair management to settlement and subrogation.
The firm has around 1,100 clients with around 75% of the top 20 global property and casualty insurance firms.
Initially, Innovation was started in the UK as Merlinace in 1996 and the name had been changed to Innovation Group in 1999, which focused on developing claims software and outsourcing solutions for insurers.
With around $193bn worth assets under management, Carlyle operates in North America, South America, Europe, the Middle East, Africa, Asia and Australia.