Apparatus and methods for optimizing data transmission between two hosts via a network device. The network device initially allows a first connection to be established between the two host devices. This first connection is logically established directly between the host devices without modification by the network device. The network device analyzes data transmitted via the first connection and determines whether to allow the first connection to continue without intervention by the network device, or whether to split the connection into separate TCP connections with the network device as intermediary. The network device maintains connection state and emulates both host devices to allow the first connection to be split without disrupting the communication at either host device.