Data Storage Corp (DTST): M&A transaction — Data Storage closes sale of CloudFirst for $40M; targets AI, GPU, cybersecurity

Data Storage Corp

Sale closed Sep 11, 2025; gross proceeds $40M; estimated net proceeds ~$24M after fees, taxes, adjustments.
Shareholders approved transaction on Sep 10, 2025 with 4,045,746 votes for, 20,930 against.
Remaining operating subsidiary Nexxis generated ~$1.1M sales in FY2024; Company plans to pursue acquisitions in AI, GPU, and cybersecurity.
Pro forma financials show net loss attributable to common stock of $(2.75M) for FY2024 and $(1.44M) for H1 2025 after removing CloudFirst.
CloudFirst brand and leadership remain intact under new owner Performive, backed by Renovus Capital.

item 1.01 item 5.07 item 2.01 item 7.01 item 9.01

Key facts

Extracted from this filing and checked against the source text.

M&A Transactions SEC 8-K Item 2.01/5.01 confidence 0.9

Data Storage Corp completed a disposition involving Total Server Solutions Holdings, LLC for $40 million (closed 2025-09-11).

Action: disposition
Counterparty: Total Server Solutions Holdings, LLC
Consideration: $40 million
Closing: 2025-09-11

Exact text from the filing

”), the Divestiture was consummated. At the closing of the Divestiture, Purchaser: (i) purchased all of the outstanding units of NewCo in exchange for the purchase price of $40 million, as adjusted in accordance with the Purchase Agreement, and (ii) assumed the Assumed Liabilities, as such term is defined in the Contribution Agreement. Following the

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Data Storage Corp filing history →

Source: SEC EDGAR

accession 0001731122-25-001268

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