CloudFirst to Join Performive in Strategic Growth Transaction
Data Storage Corporation (Nasdaq: DTST) has announced a definitive agreement to sell its subsidiary CloudFirst Technologies Corporation to Performive, a cloud infrastructure provider backed by Renovus Capital Partners. The transaction, subject to shareholder approval at the September 10, 2025 annual meeting, will maintain CloudFirst's brand, leadership, and support teams.
Following shareholder approval, DTST plans to initiate a tender offer to repurchase up to 85% of its outstanding shares. The company will retain its public listing and continue operating Nexxis Inc., its telecommunications division. Remaining funds will be used to pursue strategic acquisitions in high-growth sectors including AI-enabled SaaS, cybersecurity, and healthcare automation.
Data Storage Corporation (Nasdaq: DTST) ha annunciato un accordo definitivo per la vendita della sua controllata CloudFirst Technologies Corporation a Performive, un fornitore di infrastrutture cloud supportato da Renovus Capital Partners. L'operazione, soggetta all'approvazione degli azionisti durante l'assemblea annuale del 10 settembre 2025, manterrà il marchio, il management e i team di supporto di CloudFirst.
Dopo l'approvazione degli azionisti, DTST prevede di avviare un'offerta pubblica di acquisto per riacquistare fino all'85% delle azioni in circolazione. L'azienda manterrà la sua quotazione in borsa e continuerà a gestire Nexxis Inc., la sua divisione telecomunicazioni. I fondi residui saranno utilizzati per acquisizioni strategiche in settori ad alta crescita come SaaS con intelligenza artificiale, cybersecurity e automazione sanitaria.
Data Storage Corporation (Nasdaq: DTST) ha anunciado un acuerdo definitivo para vender su subsidiaria CloudFirst Technologies Corporation a Performive, un proveedor de infraestructura en la nube respaldado por Renovus Capital Partners. La transacción, sujeta a la aprobación de los accionistas en la junta anual del 10 de septiembre de 2025, mantendrá la marca, liderazgo y equipos de soporte de CloudFirst.
Tras la aprobación de los accionistas, DTST planea iniciar una oferta pública de compra para recomprar hasta el 85% de sus acciones en circulación. La compañía conservará su cotización en bolsa y continuará operando Nexxis Inc., su división de telecomunicaciones. Los fondos restantes se destinarán a adquisiciones estratégicas en sectores de alto crecimiento como SaaS con inteligencia artificial, ciberseguridad y automatización en salud.
Data Storage Corporation (나스닥: DTST)는 자회사인 CloudFirst Technologies Corporation를 Renovus Capital Partners가 지원하는 클라우드 인프라 제공업체 Performive에 매각하는 최종 계약을 발표했습니다. 이 거래는 2025년 9월 10일 주주총회 승인을 조건으로 하며, CloudFirst의 브랜드, 경영진 및 지원 팀은 유지됩니다.
주주 승인 후, DTST는 발행 주식의 최대 85%를 재매입하는 공개 매수 제안을 시작할 계획입니다. 회사는 상장 상태를 유지하며 통신 부문인 Nexxis Inc. 운영을 계속할 예정입니다. 남은 자금은 AI 기반 SaaS, 사이버 보안, 의료 자동화 등 고성장 분야의 전략적 인수에 사용될 것입니다.
Data Storage Corporation (Nasdaq : DTST) a annoncé un accord définitif pour vendre sa filiale CloudFirst Technologies Corporation à Performive, un fournisseur d'infrastructures cloud soutenu par Renovus Capital Partners. La transaction, soumise à l'approbation des actionnaires lors de l'assemblée générale annuelle du 10 septembre 2025, conservera la marque, la direction et les équipes de support de CloudFirst.
Après approbation des actionnaires, DTST prévoit de lancer une offre publique d'achat pour rachat pouvant atteindre 85 % de ses actions en circulation. La société conservera sa cotation en bourse et continuera d'exploiter Nexxis Inc., sa division télécommunications. Les fonds restants seront utilisés pour des acquisitions stratégiques dans des secteurs à forte croissance tels que le SaaS doté d'intelligence artificielle, la cybersécurité et l'automatisation des soins de santé.
Data Storage Corporation (Nasdaq: DTST) hat eine endgültige Vereinbarung zum Verkauf seiner Tochtergesellschaft CloudFirst Technologies Corporation an Performive, einen von Renovus Capital Partners unterstützten Cloud-Infrastruktur-Anbieter, bekannt gegeben. Die Transaktion steht unter dem Vorbehalt der Zustimmung der Aktionäre auf der Hauptversammlung am 10. September 2025 und wird die Marke, Führung und Support-Teams von CloudFirst erhalten.
Nach der Zustimmung der Aktionäre plant DTST ein Übernahmeangebot, um bis zu 85 % seiner ausstehenden Aktien zurückzukaufen. Das Unternehmen wird weiterhin an der Börse gelistet bleiben und Nexxis Inc., seine Telekommunikationssparte, weiter betreiben. Die verbleibenden Mittel sollen für strategische Akquisitionen in wachstumsstarken Branchen wie KI-gestütztem SaaS, Cybersicherheit und Gesundheitsautomatisierung verwendet werden.
- None.
- Transaction requires shareholder approval
- Divestment of major subsidiary could impact current business model
- Company acknowledges public markets undervalued CloudFirst's potential
Insights
DTST's CloudFirst sale could unlock shareholder value through 85% share repurchase while pivoting toward high-growth sectors.
Data Storage Corporation's announcement represents a significant strategic pivot that could substantially reshape the company's structure and focus. The planned sale of CloudFirst to private equity-backed Performive appears designed to unlock value that management believes isn't being properly recognized in the public markets.
The most notable aspect is the aggressive capital return strategy - using proceeds to fund a tender offer for up to
Post-transaction, DTST would emerge as a much smaller public entity focused on its Nexxis telecommunications business while seeking acquisitions in higher-growth sectors like AI-enabled SaaS, cybersecurity, and healthcare automation. This represents a dramatic strategic shift from its current business model.
For CloudFirst itself, the transaction appears structured to minimize operational disruption, with the brand, leadership team, and support personnel remaining intact. The backing of Renovus Capital Partners potentially provides additional resources for CloudFirst's growth in a private setting without quarterly public market pressures.
The transaction timing is specific, with a shareholder vote scheduled for September 10, 2025. Management's mention of recent staff additions suggests confidence in business continuity despite the pending sale. This strategic realignment effectively creates three potential value paths: the CloudFirst sale, the substantial share repurchase, and the company's pivot toward higher-growth sectors.
Data Storage Subsidiary Sale Subject to Shareholder Approval
MELVILLE, N.Y., July 15, 2025 (GLOBE NEWSWIRE) -- Data Storage Corporation (Nasdaq: DTST) (the “Company”) today announced that on July 11, 2025 it entered into a definitive agreement to sell the assets of the business of its wholly owned subsidiary, CloudFirst Technologies Corporation. The goal of this transaction is to continue to accelerate CloudFirst’s growth with a new purchaser, while exploring strategic opportunities for the Company that enhance shareholder value. The transaction is subject to customary closing conditions and approval by Data Storage Corporation’s shareholders at its annual meeting of shareholders scheduled for September 10, 2025.
Under the terms of the agreement, CloudFirst will join Performive, a cloud and infrastructure services provider backed by Renovus Capital Partners, a private equity firm. CloudFirst will continue to market its services under its well-established brand, the CloudFirst leadership team will remain in place, and CloudFirst will maintain its renowned support and account management teams. The Company expects continuity throughout the approval process and beyond.
If the transaction is approved by the Company’s shareholders, Data Storage expects that it will retain its public listing and continue to operate Nexxis Inc., a provider of telecommunications and data services. Assuming shareholder approval and closing of the transactions, the Company is planning to use the proceeds together with certain other cash on hand in connection with a tender offer to repurchase up to
Chuck Piluso, CEO of Data Storage Corporation, commented, “This agreement highlights the long-term value CloudFirst has created and reflects confidence in the future. While the transaction remains subject to shareholder approval, operations at CloudFirst remain unchanged, with no changes to structure or leadership. The current teams remain fully committed to delivering the high standards our clients expect and, in fact, over the past 30 days we have added staff. With the added scale and strategic backing from this transaction, we expect CloudFirst to be well-positioned for continued growth, while preserving the identity and strengths that have driven its success to date.”
“Although we believe in the strong fundamentals and long-term potential of CloudFirst, we believe that the public markets did not adequately reflect its value. This transaction positions CloudFirst for continued growth in a private setting, while allowing Data Storage to return value to shareholders and pursue strategic opportunities in high growth sectors,” concluded Mr. Piluso.
About Data Storage Corporation
Data Storage Corporation (Nasdaq: DTST) through its subsidiaries, is focused on providing solutions that ensure business continuity, improvement in business processes, and efficiency, while striving to build shareholder value.
For more information, please visit www.dtst.com or follow us on X @DataStorageCorp.
Safe Harbor Provision
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, that are intended to be covered by the safe harbor created thereby. Forward-looking statements are subject to risks and uncertainties that could cause actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “plans” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may” and “could” are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can provide no assurance that such expectations will prove to have been correct. These forward-looking statements are based on management’s expectations and assumptions as of the date of this press release and include statements regarding approval by the Company’s shareholders at its annual meeting scheduled for September 10th, 2025; the transaction continuing to accelerate CloudFirst’s growth and allowing the Company to explore strategic opportunities that enhance shareholder value; CloudFirst continuing to market its services under its well-established brand; the CloudFirst leadership team remaining in place; CloudFirst maintaining its renowned support and account management teams; the Company’s expectation of continuity throughout the approval process and beyond; the Company expecting to retain its public listing and continuing to operate Nexxis Inc.; the Company’s plan to use the proceeds together with certain other cash on hand in connection with a tender offer to repurchase up to
Contact:
Crescendo Communications, LLC
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DTST@crescendo-ir.com
FAQ
What is the strategic transaction announced by Data Storage Corporation (DTST)?
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