Data Storage Corporation (NASDAQ:DTST) stock jumped 29% following news of a binding deal to divest its subsidiary CloudFirst Technologies Corporation to Performive, a cloud services company supported by Renovus Capital Partners.
The deal, announced July 15, awaits shareholder approval at Data Storage’s annual meeting on September 10, 2025. According to the terms, CloudFirst will retain its brand identity while integrating into Performive, with its current leadership and support teams staying in place.
Proceeds from the sale will fund a tender offer for repurchasing up to 85% of Data Storage’s outstanding shares, as the company plans to maintain its public listing and continue operating its telecommunications arm Nexxis Inc. Additional capital will be directed toward acquisitions in expanding sectors such as AI-driven SaaS, cybersecurity, and healthcare automation.
“This agreement highlights the long-term value CloudFirst has created and reflects confidence in the future,” stated Chuck Piluso, CEO of Data Storage Corporation. He noted the company believes the public markets have undervalued CloudFirst and that the transaction enables Data Storage to deliver shareholder value while pursuing strategic growth opportunities.
The sale remains subject to typical closing conditions alongside shareholder approval. Data Storage confirmed CloudFirst’s operations will proceed uninterrupted throughout the approval process, with recent staffing additions reinforcing ongoing business continuity.
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