Data Storage Stock Surges In Pre-Market Over Deal To Sell CloudFirst Technologies

(RTTNews) - Data Storage Corp. (DTST) announced that the company has entered into a deal to sell the assets of the business of its wholly owned subsidiary, CloudFirst Technologies Corporation.

As per the deal, CloudFirst will join Performive, a cloud and infrastructure services provider backed by Renovus Capital Partners, a private equity firm.

If the transaction is approved by the shareholders, the company expects that it will retain its public listing and continue to operate Nexxis Inc., a provider of telecommunications and data services.

The company intends to use the proceeds, along with existing cash, to repurchase up to 85 percent of its outstanding shares.

In the pre-market hours, Data Storage's stock is trading at $4.56, up 36.12 percent on the Nasdaq.