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LONDON, Aug 28 (Reuters) - U.S. private equity firm Carlyle is in advanced talks about buying Innovation Group for 40 pence a share in cash, valuing its equity atalmost 500 million pounds ($769 million), the British softwarecompany said on Friday.
Innovation, which provides software and services to helpinsurers process claims, said the talks may or may not lead to adeal.
Shares in Innovation Group, which have risen by 18 percentin the last 12 months, were trading 6 percent higher at 37.5pence at 1029 GMT.
Under takeover rules, Carlyle has until Sept. 25 to make afirm offer for Innovation or announce it does not intend to makean offer.
Innovation Group is being advised by Investec.
($1 = 0.6503 pounds) (Reporting by Paul Sandle; editing by Jason Neely)
