Core Viewpoint - Data Storage Corporation has entered into a definitive agreement to sell its subsidiary, CloudFirst Technologies Corporation, to Performive, aiming to enhance CloudFirst's growth and explore strategic opportunities for shareholder value [1][2][4]. Group 1: Transaction Details - The sale of CloudFirst is subject to customary closing conditions and requires approval from Data Storage Corporation's shareholders at the annual meeting scheduled for September 10, 2025 [1][3]. - CloudFirst will continue to operate under its established brand, with its leadership team and support staff remaining unchanged [2][4]. - The transaction is expected to provide CloudFirst with strategic backing for continued growth in a private setting [4][7]. Group 2: Financial Implications - If approved, Data Storage Corporation plans to use the proceeds from the sale, along with existing cash, to repurchase up to 85% of its outstanding shares through a tender offer [3][7]. - Remaining funds after the tender offer will be allocated towards strategic growth through acquisitions in high-growth sectors such as AI-enabled SaaS, cybersecurity, and healthcare automation [3][7]. Group 3: Management Commentary - The CEO of Data Storage Corporation emphasized the long-term value created by CloudFirst and expressed confidence in the future, highlighting that operations at CloudFirst will remain unchanged during the approval process [4][7]. - The CEO also noted that the public markets have not adequately reflected CloudFirst's value, and the transaction is seen as a way to return value to shareholders while pursuing growth opportunities [4][7].
CloudFirst to Join Performive in Strategic Growth Transaction