How splendid raising capital by a rights issue instead of shares to friends in investment houses ... this is surely a winner.

StockMarketWire.com
Innovation Group has signed a major contract with Lloyds Banking Group for its market leading claims scoping solution Innovation Symbility.

The new contract, which is for an initial period of five years, will be charged on a transactional basis and will contribute about £7m to Innovation Group revenues over the term with volumes expected to be fully ramped by Q1 2014.

The Board of Innovation Group (LSE: TIG.L) notes the recent press speculation and confirms that it is in advanced discussions with The Carlyle Group (“Carlyle”), at 40 pence per share in cash, which may or may not lead to an offer being made for the Company.

This announcement is not an announcement of a firm intention to make an offer under Rule 2.7 of the City Code on Takeovers and Mergers (the “Code”). A further announcement may be made shortly and will be made as appropriate. However, there can be no certainty that an offer will be made, nor as to the terms on which any offer will be made.

This announcement is made without Carlyle’s consent.