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Digital media and technology firm Catenae Innovation (LON: CTEA) has acquired a 51% stake in Hyperneph Software, the company said on Tuesday.
Catenae have worked closely with Hyperneph on its technology development in recent months and will now pay a sum of £320,000 for the majority stake.
£270,000 will be paid in cash, with £50,000 paid by way of the issue of new ordinary shares in the company. Catenae said the money will be taken from its existing resources.
Hyperneph is a software and application development consultancy focusing on digital transformation. It was incorporated in February 2020.
Catenae said the rationale for the acquisition is to secure and enhance the company's ability to deliver innovative software-based solutions. It will allow Catenae to provide a broader portfolio of product and service offerings to support customers.
Former director of Catenae, Tony Sanders, is a shareholder in Hyperneph, while former Catenae employee and current advisor, Alan Simpson, is also a shareholder in Hyperneph.
The new board of Hyperneph, once the acquisition is completed, will include Tony Sanders.
Guy Meyer, Chief Executive Officer of Catenae, said: “The acquisition will combine the experience and expertise of both businesses, allowing our software development teams to operate seamlessly enabling Catenae to develop broader and deeper capabilities in distributed ledger technology, web and mobile applications and data management techniques.
“Hyperneph brings proprietary know-how and new services including IT consulting, customer support and data analysis which will enable Catenae to expand its product offering and potentially enter new markets. We look forward to working together over the coming years.”
Catenae's share price has climbed higher following the news, up 2.06% at 2.49p.
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