Vortex Pipes: VTX Holdings acquiree NexGen could improve Facebook, YouTube experience

VTX Holdings (ASX:VTX) is acquiring NexGen Networks, which has developed cutting edge software technology to optimise data flow between devices and facilitates faster speeds on existing hardware.The acquisition of NexGen strategically diversifies and expands the operations of VTX into the fast growing global mobile technology sector, worth over $100 billion annually.NexGen has now entered into an agreement with Simplisite Business Solutions to deliver the next phase of testing and development of the company's technology.This includes overseeing consumer based testing and development of iOS and Android Apps.The agreement provides NexGen with the resources and expertise to fast-track the next phase of development and accelerate its time-to-market.Cam Worth, co-founder of Simplisite Business Solutions, said that the technology has demonstrated outstanding results during the due diligence testing period.Worth also added the technology has potential to improve user experience and optimise data levels across the world's major social media platforms.These include Facebook, Instagram, YouTube, iTunes and Netflix and is marketable to every Smartphone user around the globe.Worth has been appointed as full-time lead manager to oversee NexGen's next development stages post the successful completion of due diligence.He has been engaged to assemble a dedicated specialist team to drive further optimization, product enhancements and test speeds on some of the world's leading social and streaming media platforms with over 3 billion potential customersAnalysisVTX Holdings has successfully carried out the due diligence process over the past month on NexGen, and the appointment Worth provides further validation of the technology and its global appeal.NexGen's technology disrupts a rapidly growing sector of data usage and transfers allowing bigger packets of already compressed data to be sent more effectively, facilitating faster speeds on existing hardware.The technology has demonstrated over 300% increase in data speed and over 30% data volume reduction on the world wide web.The next steps for VTX and NexGen is to commence a commercialisation strategy planning to monetise and roll out the technology in coming months.VTX will seek approval to change its name to NexGen Networks in conjunction with the transaction, along with re-compliance with Chapters 1 and 2 of the ASX Listing Rules.Upcoming key catalyst:NexGen is currently operating in alpha mode; the next milestone includes the delivery of a further optimised Beta Application on Android in Q4 2015The technology has been shown to work effectively on video data and over encrypted connections, opening up significant opportunities based on the current global demand for digital video content and secure / private data exchange over the Internet.Transaction TermsVTX paid a non-refundable cash deposit of $100,000 upon execution of the Terms Sheet to NexGen as initial consideration, and shall issue 240,000,000 shares and 160,000,000 performance shares to the vendors.In addition, VTX has agreed to loan up to $500,000 in 5 equal monthly instalments, with each advance able to be converted into a 4% equity interest in NexGen resulting in an aggregate of 20% interest in NexGen if all advances are converted.The Transaction is conditional on a number of conditions precedents. Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.