In anticipation of being the vehicle for a backdoor listing on the Australian Securities Exchange (ASX) for New Zealand-based software technology provider NexGen Networks (NGN), which is estimated to be valued at AU$8.6 million, VTX Holdings has completed its due diligence.
As part of the exercise, VTX said that over 1,400 tests were conducted in a 96-hour period on NGN's Warpware technology, which processed over 13.8GB of data, including simulated web browsing, as well as video, audio, and file transfers.
The Warpware technology has been designed to improve data transfers and download speeds.
While the tests were conducted in a virtualised environment using a control network and third-party software, the company said it saw speed transfers increase by over 100 percent, including peak speeds reaching over 300 percent. Additionally, the testing saw total data transfer reduce to 11.29GB on the network, representing an 18 percent reduction in data usage, with peaks as high as 42 percent.
Cam Worth, who was appointed as the independent technical and commercial advisor to the board to advise on the technology potential and commercialisation of NexGen, said the results from the testing provided validation of NGN's technology to improve transfer speeds and reduce data usage.
"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," he said.
Following the due diligence, VTX said it will conduct further testing on streaming audio and video platforms such as iTunes, YouTube, and Netflix.
"Successful optimisation of compressed video, imagery, and audio over the HTTPS protocol opens significant opportunities within the video-streaming market," the company said.
"The combination is expected to enable increased transfer speeds and higher quality of videos on popular platforms such as Netflix, YouTube, and Facebook. This will drive higher value into developed markets looking to improve the quality of customer experience when accessing these platforms."
Additionally, VTX said there are plans to focus on the development of a mobile application for the front end of the platform. Currently, NGN is operating in alpha mode, but there are plans to release a beta version on Android by Q4 2015.
Under the agreement of the takeover, VTX said it will loan up to AU$500,000 in five equal monthly instalments, with each advance able to be converted into a 4 percent equity interest in NexGen. This is expected to give VTX a total 20 percent interest in NexGen if all advances are converted. The company will also seek approval to change its name to NexGen Networks in conjunction with completing the transaction.
One of NGN's backers, Keaton Wallace, is also the founder of Ziptel, which was acquired by AussieSim last year.