Northgate Information Solutions, the human resources software group, is in takeover talks with a private equity group hoping to achieve a price of around 100p per share, valuing it at up to £580m.

The Hemel Hempstead-based group announced late Wednesday afternoon it was in negotiations with an unnamed suitor. It also responded to two analysts’ notes, which had raised concerns that Northgate could breach its net debt covenants in the coming year.