Data Storage Corporation Soars 25.44% on Cloud Solutions Divestiture

On July 16, 2025, Data Storage Corporation's stock surged by 25.44% in pre-market trading, marking a significant rise in investor interest and confidence in the company's future prospects.

Data Storage Corporation has recently entered into a unit purchase agreement with Total Server Solutions Holdings, LLC, to sell its cloud solutions business. This divestiture includes the transfer of all assets necessary to operate the business, including the equity interests of CloudFirst Europe Ltd. The transaction is valued at $40 million, with adjustments for indemnity and net working capital. The closing of the divestiture is subject to shareholder approval, regulatory clearances, and other customary conditions. The company's remaining operating subsidiary, Nexxis, Inc., generated approximately $1.1 million in sales for the fiscal year ended December 31, 2024.

Supporting the divestiture, key shareholders, including the company's CEO, President, Executive Vice President, and a board member, have executed support agreements, committing to vote their shares in favor of the proposal. These shareholders collectively own approximately 40% of the company's common stock. The divestiture is expected to position CloudFirst Delaware for continued growth in a private setting, while allowing Data Storage Corporation to return value to shareholders and pursue strategic opportunities in high-growth sectors.