- Data Storage Corporation (DTST, Financial) announces the sale of its subsidiary, CloudFirst Technologies, to Performive.
- The transaction will fund a tender offer to repurchase up to 85% of DTST's outstanding shares.
- DTST plans strategic acquisitions in high-growth sectors like AI-enabled SaaS, cybersecurity, and healthcare automation.
Data Storage Corporation (DTST) has reached a definitive agreement to sell its subsidiary, CloudFirst Technologies Corporation, to Performive, a cloud infrastructure provider backed by Renovus Capital Partners. The transaction remains subject to approval by DTST shareholders, with a vote scheduled for September 10, 2025.
Following shareholder approval, DTST intends to utilize proceeds from the sale for a tender offer to repurchase up to 85% of its outstanding shares. This move is expected to unlock shareholder value, highlighting management's belief that the shares are currently undervalued.
The company plans to retain its public listing and continue operating Nexxis Inc., its telecommunications division. Remaining funds from the sale will be directed towards strategic acquisitions in high-growth sectors, including AI-enabled SaaS, cybersecurity, and healthcare automation.
CloudFirst will maintain its brand, leadership, and support teams, ensuring operational continuity post-acquisition. With the backing of Renovus Capital Partners, CloudFirst aims to leverage growth opportunities in a private setting, without the pressures of the public market.
