New Zealand-based software technology company NexGen is planning a reverse ASX listing via a takeover by Perth-based pipe rehabilitation firm VTX Holdings.
The deal is being financed by another Perth business, Cicero Corporate, which backed the listing of Subiaco telco Ziptel 12 months ago in another reverse listing that’s made the business the poster child for the model. Ziptel founder Keaton Wallace is joining the board to drive the deal, which remains subject to shareholder approval and prices the company at around $6 million.
Founded in 2013 by tech entrepreneurs and retail execs Jason Gitmans and Robert Pole, NextGen has developed software it calls “Warpware” using customised algorithms to send compressed, encrypted data in bigger packets at faster speeds on existing hardware.
The company plans to target the mobile market and claims its tech reduces the level of data transferred by more than 30%, will increase speeds by up to 300% and is readily scalable. Warpware will be first to market, with its initial release via mobile apps for iOS, Android and Windows. It plans to include higher definition streaming, better quality “voice over Internet protocol” calls and additional security through encryption
NexGen will initially commercialise its technology to end consumers via monthly subscriptions and consider licensing with global and industry partners down the track.
The VTX Holdings deal is set for completion by December 31, 2015.