Data Storage Corporation (NASDAQ: DTST) shares jumped 29.55% in pre-market activity to hit $4.34 at the latest check. The large jump in stock price followed the company’s announcement of a formal asset sale deal with its wholly owned subsidiary, CloudFirst Technologies Corporation.
The deal, signed on July 11, 2025, intends to support CloudFirst’s future growth under new ownership while enabling Data Storage to pursue larger strategic options that boost shareholder value.
CloudFirst to Join Performive
CloudFirst will be bought by Performive, a cloud infrastructure services company sponsored by private equity firm Renovus Capital Partners. The CloudFirst brand, together with its leadership and support staff, will remain intact post-transaction, assuring operational continuity.
Data Storage emphasized that CloudFirst will maintain its established service identity and customer relationships throughout and beyond the transition period.
Shareholder Vote and Future Strategy
The completion of the transaction is contingent upon customary closing conditions, including shareholder approval during Data Storage’s annual meeting scheduled for September 10, 2025.
If the purchase is concluded, Data Storage will keep its NASDAQ listing and continue operations of Nexxis Inc., its telecommunications and data services segment. In conjunction with the deal’s revenues and existing cash reserves, the business expects to conduct a tender offer to buy up to 85% of its outstanding shares.
Reinvesting in High-Growth Sectors
Following the tender offer, the business expects to employ leftover money for strategic acquisitions, targeting high-growth areas such as AI-powered SaaS platforms, cybersecurity solutions, and healthcare automation.
According to business leadership, the acquisition reinforces CloudFirst’s long-term value and opens the possibility for Data Storage to reorient its resources toward more meaningful development possibilities.
A Win-Win for Growth
While operations at CloudFirst remain steady, the shift to private ownership is meant to facilitate additional expansion. Meanwhile, Data Storage Corporation aspires to generate meaningful value to shareholders and reorient its emphasis toward industries with substantial development potential—signaling a crucial transition in its business trajectory.
