Data Storage Corporation (Nasdaq: DTST) has completed the sale of its CloudFirst business to Performive, a cloud infrastructure provider backed by Renovus Capital Partners. The transaction, which received shareholder approval on September 10, 2025, generated $40 million in gross proceeds and $24 million in net proceeds after fees, taxes, and adjustments.
The company plans to utilize the proceeds for targeted acquisitions and investments in digital infrastructure, focusing on AI-enabled software, GPU technologies, and cybersecurity. DSC will continue operating its telecommunications subsidiary, Nexxis, Inc. Under Performive's ownership, the CloudFirst brand, leadership team, and service model will remain unchanged, ensuring continuity in client relationships and operations.
Data Storage Corporation (Nasdaq: DTST) ha completato la vendita della sua attività CloudFirst a Performive, fornitore di infrastrutture cloud sostenuto da Renovus Capital Partners. L’operazione, approvata dagli azionisti il 10 settembre 2025, ha generato 40 milioni di dollari di proventi lorde e 24 milioni di dollari di proventi netti dopo oneri, tasse e aggiustamenti. L’azienda intende utilizzare i proventi per acquisizioni mirate e investimenti in infrastruttura digitale, con focus su software abilitato all’AI, tecnologie GPU e cybersecurity. DSC continuerà a gestire la sua controllata di telecomunicazioni, Nexxis, Inc. Sotto la proprietà di Performive, il marchio CloudFirst, il team dirigenziale e il modello di servizio rimarranno invariati, garantendo continuità nelle relazioni con i clienti e nelle operazioni.
Data Storage Corporation (Nasdaq: DTST) ha completado la venta de su negocio CloudFirst a Performive, un proveedor de infraestructura en la nube respaldado por Renovus Capital Partners. La transacción, que recibió la aprobación de los accionistas el 10 de septiembre de 2025, generó 40 millones de dólares en entradas brutas y 24 millones de dólares en entradas netas tras comisiones, impuestos y ajustes. La empresa planea utilizar los ingresos para adquisiciones selectivas e inversiones en infraestructura digital, centrándose en software habilitado para IA, tecnologías GPU y ciberseguridad. DSC seguirá operando su filial de telecomunicaciones, Nexxis, Inc. Bajo la propiedad de Performive, la marca CloudFirst, el equipo directivo y el modelo de servicio permanecerán sin cambios, asegurando la continuidad de las relaciones con los clientes y las operaciones.
Data Storage Corporation(Nasdaq: DTST)은 Renovus Capital Partners가 뒷받침하는 클라우드 인프라 공급업체 Performive에 CloudFirst 사업을 매각하는 계약을 완료했습니다. 2025년 9월 10일 주주 승인을 받은 이 거래는 총 4천만 달러의 총수익과 수수료, 세금 및 조정을 차감한 후 2천4백만 달러의 순수익을 창출했습니다. 회사는 이 수익을 디지털 인프라에 대한 표적 인수 및 투자에 활용할 계획이며, AI 지원 소프트웨어, GPU 기술, 사이버 보안에 중점을 둘 것입니다. DSC는 텔레콤 자회사 Nexxis, Inc.를 계속 운영합니다. Performive의 소유 아래 CloudFirst 브랜드, 리더십 팀 및 서비스 모델은 변경 없이 유지되어 고객 관계와 운영의 연속성을 보장합니다.
Data Storage Corporation (Nasdaq : DTST) a finalisé la vente de son activité CloudFirst à Performive, un fournisseur d’infrastructures cloud soutenu par Renovus Capital Partners. L’opération, approuvée par les actionnaires le 10 septembre 2025, a généré 40 millions de dollars de produits bruts et 24 millions de dollars de produits nets après frais, impôts et ajustements. L’entreprise prévoit d’utiliser les produits pour des acquisitions ciblées et des investissements dans l’infrastructure numérique, en se concentrant sur les logiciels activés par l’IA, les technologies GPU et la cybersécurité. DSC continuera d’exploiter sa filiale de télécommunications, Nexxis, Inc. Sous la propriété de Performive, la marque CloudFirst, l’équipe dirigeante et le modèle de service resteront inchangés, assurant la continuité des relations avec les clients et des opérations.
Data Storage Corporation (Nasdaq: DTST) hat den Verkauf ihres CloudFirst-Geschäfts an Performive, einen von Renovus Capital Partners unterstützten Cloud-Infrastruktur-Anbieter, abgeschlossen. Die Transaktion, die am 10. September 2025 von den Aktionären genehmigt wurde, erzielte 40 Millionen US-Dollar Bruttoerträge und 24 Millionen US-Dollar Netzerträge nach Gebühren, Steuern und Anpassungen. Das Unternehmen plant, die Einnahmen für gezielte Akquisitionen und Investitionen in digitale Infrastruktur zu verwenden, mit Fokus auf KI-fähige Software, GPU-Technologien und Cybersicherheit. DSC wird seine Telekommunikationstochter Nexxis, Inc. weiterhin betreiben. Unter der Eigentümerschaft von Performive bleiben die CloudFirst-Marke, das Führungsteam und das Service-Modell unverändert, um Kontinuität in Kundenbeziehungen und Betrieb sicherzustellen.
أكملت شركة Data Storage Corporation (ناسداك: DTST) بيع أعمالها CloudFirst إلى Performive، وهي مزود بنية تحتية سحابية مدعوم من Renovus Capital Partners. الصفقة، التي حظيت بموافقة المساهمين في 10 سبتمبر 2025، حققت 40 مليون دولار من العائد الإجمالي و 24 مليون دولار من العائد الصافي بعد الرسوم والضرائب والتعديلات. تخطط الشركة لاستخدام العائدات في عمليات استحواذ مستهدفة واستثمارات في البنية التحتية الرقمية، مع تركيز على البرمجيات المدعومة بالذكاء الاصطناعي وتقنيات GPU والأمن السيبراني. ستستمر DSC في تشغيل شركتها الفرعية في مجال الاتصالات Nexxis, Inc. وتحت ملكية Performive ستبقى علامة CloudFirst وفريق القيادة ونموذج الخدمة دون تغيير، مما يضمن الاستمرارية في علاقات العملاء والعمليات.
Data Storage Corporation（纳斯达克：DTST）已完成将其 CloudFirst 业务出售给 Performive 的交易，后者是一家由 Renovus Capital Partners 支持的云基础架构提供商。该交易在2025年9月10日获得股东批准，产生四千万元毛收益和两千四百万元净收益（扣除费用、税款及调整后）。公司计划将收益用于有针对性的并购和在数字基础设施方面的投资，重点放在 AI 驱动的软件、GPU 技术及网络与信息安全。DSC 将继续运营其电信子公司 Nexxis, Inc。在 Performive 的所有权下，CloudFirst 品牌、领导团队和服务模式将保持不变，确保客户关系和运作的连续性。
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Divestment of substantial portion of company assets through CloudFirst sale
Significant reduction in current business operations and revenue streams
Insights
DSC's $40M CloudFirst sale strengthens balance sheet, shifting focus to AI, GPU, and cybersecurity investments with $24M in net proceeds.
Data Storage Corporation has completed the sale of its CloudFirst business to Performive for $40 million in gross proceeds, yielding approximately $24 million in net proceeds after accounting for fees, taxes, and adjustments. This transaction, which received shareholder approval on September 10, represents a significant strategic pivot for the company.
The cash infusion substantially strengthens DSC's balance sheet and provides significant capital for its stated investment strategy. Management has outlined plans to deploy these proceeds toward targeted acquisitions in high-growth technology sectors - specifically AI-enabled software, GPU technologies, and cybersecurity. This signals a strategic shift toward higher-margin, faster-growing market segments compared to its traditional cloud infrastructure business.
While divesting CloudFirst, DSC will continue operating Nexxis, Inc., its telecommunications subsidiary, providing some operational continuity. The company's emphasis on seeking opportunities with recurring revenue suggests management is prioritizing stable, predictable cash flows in its acquisition strategy, which typically commands higher valuation multiples.
For CloudFirst clients, the transaction appears structured to maintain continuity, with the brand, leadership team, and service model remaining intact under Performive's ownership. This should help preserve the value of the acquired assets while minimizing disruption to existing business relationships. The backing of Renovus Capital Partners, a private equity firm, provides CloudFirst with potential resources for further growth under its new ownership.
Proceeds to Support Strategic Investments and Targeted Acquisitions in Technology Sectors
MELVILLE, N.Y., Sept. 12, 2025 (GLOBE NEWSWIRE) -- Data Storage Corporation (Nasdaq: DTST) (“DSC” or the “Company”), today announced it has completed the previously announced sale of its CloudFirst business (“CloudFirst”), comprised of substantially all of the assets held by CloudFirst Technologies Corporation, a wholly-owned subsidiary of the Company, to Performive, a cloud infrastructure provider backed by Renovus Capital Partners. The transaction, approved by shareholders on September 10, 2025, closed on September 11, 2025, and generated approximately $40 million in gross proceeds, with estimated net proceeds of $24 million after fees, taxes, and adjustments.
The Company plans to use proceeds to support targeted acquisitions and investments in areas aligned with digital infrastructure, including artificial intelligence (“AI”)-enabled software, graphics processing unit (“GPU”) technologies, and cybersecurity. DSC will also continue operating Nexxis, Inc., its telecommunications subsidiary.
While the Company has identified key sectors of interest, it remains open to opportunities that offer recurring revenue and long-term shareholder value.
“With the CloudFirst transaction complete, we are in a stronger position to evaluate and execute targeted acquisitions,” said Chuck Piluso, CEO of Data Storage Corporation. “We will take a disciplined approach to investing in infrastructure and software businesses that align with our operating capabilities and offer recurring revenue potential.”
Transaction Continuity The CloudFirst brand, leadership team, and service model will remain intact under Performive. No changes are expected to client relationships, staffing, or service delivery.
About Data Storage Corporation Data Storage Corporation (Nasdaq: DTST) focuses on investing in and supporting businesses in GPU Infrastructure-as-a-Service (IaaS), AI-driven software applications, cybersecurity, and voice/data telecommunications. The Company’s goal is to build recurring revenue streams while maintaining operational discipline.
Safe Harbor Statement 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. Important factors that could cause actual results to differ materially from current expectations include the completion of the sale of the CloudFirst business positioning the Company to execute a growth strategy; the transaction generating anticipated net proceeds of approximately $24 million to the Company after fees, taxes, and other adjustments; the Company’s plans to pursue targeted acquisitions in complementary and high-growth areas that align with the broader digital transformation marketplace in addition to continuing to operate its subsidiary, Nexxis, Inc.; the key areas of focus for the Company, including AI-enabled vertical SaaS, cybersecurity solutions, Edge AI, GPU technologies, and healthcare workflow automation, representing a large and expanding market opportunity where Data Storage Corporation can broaden its portfolio and capture long-term growth; the Company remaining flexible in pursuing acquisitions with a focus on building recurring revenue streams and delivering sustained shareholder value; the Company’s ability to execute its M&A strategy to capitalize on attractive opportunities across key sectors; the Company’s ability to build a strong, more diversified company that delivers innovation and creates lasting value for our shareholders; Purchaser retaining the CloudFirst name, the CloudFirst leadership team, and service structure, with no planned changes to staffing, client relationships, or service delivery; and the Company’s ability to provide leading edge technologies, while building shareholder value. These risks should not be construed as exhaustive and should be read together with the other cautionary statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, the Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it was initially made. Except as required by law, the Company assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or otherwise.
How much did Data Storage Corporation (DTST) receive from the CloudFirst sale?
Data Storage Corporation received $40 million in gross proceeds and $24 million in net proceeds after fees, taxes, and adjustments from the CloudFirst sale.
What will DTST do with the proceeds from the CloudFirst sale?
DTST plans to use the proceeds for targeted acquisitions and investments in digital infrastructure, specifically in AI-enabled software, GPU technologies, and cybersecurity sectors.
Will there be changes to CloudFirst operations under Performive?
No, the CloudFirst brand, leadership team, and service model will remain intact under Performive, with no changes expected to client relationships, staffing, or service delivery.
What businesses will Data Storage Corporation retain after the CloudFirst sale?
Data Storage Corporation will continue operating Nexxis, Inc., its telecommunications subsidiary, while seeking new opportunities in digital infrastructure and technology sectors.
When did DTST complete the CloudFirst sale?
The CloudFirst sale was completed on September 11, 2025, following shareholder approval on September 10, 2025.
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