Vortex Pipes: VTX Holdings in company defining acquisition of NexGen Networks

VTX Holdings (ASX:VTX) shares are expected to trade higher after the company exits an ASX trading halt following the successful completion of due diligence on the acquisition of NexGen Networks Limited (NGN).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'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.What this means is that NexGen's IP technology allows today's infrastructure, plans and devices to deliver tomorrow's bandwidth.Global internet data usage is expected to grow at 21% annually, with forecasts of 19 billion global network connections by 2017.The problem is the infrastructure to support this is not progressing at the same pace.NexGen though may have a potential solution.The next steps for VTX and NexGen is to commence a commercialisation strategy planning to monetise and roll out the technology in coming months.Due diligence details- Over 1,400 tests conducted in a 96-hour period, processing over 13.8 GB of data across key market channels.- Tests conducted demonstrate considerable data transfer optimisation across video, audio and file transfers.- Outstanding results achieved within testing environment and throughout testing period:-- Increased speed transfers of over 100%;-- Peaks over 300%; and-- Minimum data savings of 18% with peaks as high as 42%Test resultsVTX said that testing highlighted further potential and new opportunities within the enterprise sector - I.T enterprise spend estimated to reach $3.9 trillion globally by the end of 2015.There is also significant market opportunity for NexGen technology, addressing initial target of over 3 billion smartphone and tablet users globally.Earlier in the month VTX appointed Cam Worth as an Independent Technical and Commercial Advisor to the board to advise on the technology potential and commercialisation strategy of NexGen.Worth commented: "The NGN system has delivered impressive results under test conditions."Even under load, and over encrypted channels the results demonstrated optimisation and efficiencies beyond levels currently in the market."NGN have an exciting opportunity in data transfer optimisation as demand grows for quicker transfer speeds at lower data levels."About NexGen's technologyKnown as "Warpware", the technology creates and enables material efficiencies to occur between data flows through its proprietary customised algorithms, which leverages and optimises data flows based on historical user experience and usage.In particular, the technology reduces the level of data transferred in excess of 30%, based on intelligent analysis and repackaging of 'new data' being transferred between networks.The ability to deliver such optimal results is due to NexGen's customised virtual based technology, which re-directs data through to its own proprietary server, delivering faster and more efficient data usage to each user through existing infrastructure.NexGen extends the life of a company's investment in hardware. Built in a virtual environment, the technology is readily scalable, has built in safe guards against data loss, includes high availability design, and is encrypted for better security.AnalysisVTX has now successfully completed its due diligence regarding the acquisition of NexGen Networks.The acquisition will propel VTX into a significant $100 billion global market opportunity, initially targeting the mobile technology sector with 2.2 billion smartphone users, expected to grow to 3 billion by 2018.The move also establishes early mover advantage, and the potential to first to market technology that substantially extends and enhances the life of existing hardware, creating scalable efficiencies in the speed and transfer of content.An added advantage is the platform, is highly scalable with minimal capital expenditure required to fund future growth.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. 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.