CloudFirst to Join Performive in Strategic Growth Transaction

Data Storage Corporation 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 LLC, a cloud and infrastructure services provider backed by Renovus Capital Partners, a private equity firm. CloudFirst will continue to market its services under its 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 85% of its outstanding shares. Data Storage intends to use the funds remaining in the Company following the tender offer to pursue strategic growth through acquisitions in high-growth sectors, including, but not limited to, AI-enabled SaaS, cybersecurity, and healthcare automation.

Chuck Piluso, CEO, 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.