Data Storage Corporation (Nasdaq: DTST) announced the completion of the sale of its CloudFirst business to Performive, generating $40 million in gross proceeds.
The company plans to use the proceeds for strategic investments in digital infrastructure sectors like AI, GPU technologies, and cybersecurity.
With the sale completed, Data Storage Corporation is well positioned to make targeted acquisitions in line with its operating capabilities.
Sale of CloudFirst Business
Generated approximately $40 million in gross proceeds with estimated net proceeds of $24 million after fees, taxes, and adjustments.
Strategic Investments
Proceeds to support acquisitions in AI-enabled software, GPU technologies, and cybersecurity aligned with digital infrastructure.
Focused Approach
Company remains open to opportunities with recurring revenue potential to enhance shareholder value.
- The transaction strengthens Data Storage Corporation's financial position for future acquisitions and investments in key technology sectors.
- CloudFirst's transition to Performive ensures continuity in brand, leadership, and service delivery without disruptions.
Data Storage Corporation's sale of CloudFirst business marks a strategic move towards focusing on targeted acquisitions in digital infrastructure sectors. The company is poised to leverage the proceeds to drive growth and deliver long-term shareholder value.