Catenae Innovation PLC buys stake in consultancy Hyperneph Software

 () announced it has acquired a 51% interest in Hyperneph Software for £320,000.

Of this, £270,000 will be satisfied in cash and the remainder with the issue of new ordinary shares in the AIM-listed company.

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Hyperneph, incorporated on 24 February 2020, is a software and application development consultancy, focusing on digital transformation.

Catenae, which has worked with the buyee before, said the rationale for the acquisition is to secure and enhance its ability to deliver innovative software-based solutions.

It will leverage Catenae’s existing capabilities including task management, proof of work, digital wallets, identity and digital certification capabilities, allowing Catenae to provide a broader portfolio of product and service offerings to support customers as they pursue new ways of working with people located remotely in distributed operations.

Tony Sanders is a former director of the company and a director and shareholder of Hyperneph. Alan Simpson, a former employee and current advisor to the company, is a shareholder in Hyperneph.

The new board of Hyperneph following completion of the acquisition will comprise Tony Sanders, Nick Delacamp and Michelle Guerney.

Hyperneph currently provides the majority of its services to Catenae, it has no material net assets and it is envisaged that the majority of Hyperneph’s future turnover will be with Catenae.

As Tony Sanders is a previous director of the firm, the transaction is being deemed a related party transaction.

Catenae’s directors, all of whom are independent to the transaction having consulted with the group’s nominated adviser, believe the terms of the transaction are fair and reasonable as shareholders are concerned.

“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,” said the group’s chief executive Guy Meyer.

“Hyperneph brings proprietary knowhow 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.”