Data Storage Completes Merger of Flagship Solutions Group
June 03 2021 - 8:00AM
Data Storage Corporation (Nasdaq: DTST) (“DSC” and the “Company”),
a provider of diverse business continuity, disaster recovery
protection and cloud solutions, today announced it has completed
the previously announced merger of Data Storage FL, LLC, a
wholly-owned subsidiary of the Company, with and into Flagship
Solutions, LLC (“Flagship”), with Flagship surviving as a
wholly-owned subsidiary of the Company. Flagship’s Chief Executive
Officer Mark Wyllie will continue as CEO of the new Flagship
subsidiary following the Merger, and has joined DSC’s Board of
Directors.
Chuck Piluso, CEO of DSC, stated, “We are
delighted to complete this merger following our recent follow-on
public offering and uplisting to Nasdaq. This transaction
significantly expands our service offering and should be highly
synergistic with our existing IBM operations. We are now well
positioned as a leading, one-stop provider of multi-cloud IT
solution, with the ability to cross-sell solutions across our
respective enterprise and middle-market customers.”
Mark Wyllie, CEO of Flagship, further noted, “We
are excited to join the Data Storage team, and believe the timing
is ideal with many customers migrating to the IBM cloud. We expect
this market to continue to grow as the IBM on-premise server market
has only begun to transition to the cloud in the last few years.
Through the merger, we now have access to additional resources and
infrastructure that we believe will help us further accelerate our
growth.”
Additional details of the transaction are
available in the Company’s Current Report on Form 8-K, filed with
the Securities and Exchange Commission on February 10, 2021 and
available at www.sec.gov.
About Data Storage
CorporationThe Company delivers and supports a broad range
of premium technology solutions focusing on IaaS, data storage
protection and IT management. Clients look to DSC to ensure
disaster recovery, business continuity, enhance security, and to
meet increasing industry, state and federal regulations. The
Company markets to businesses, government, education and the
healthcare industry by leveraging leading technologies. Through its
business units, the Company provides IaaS, SaaS, DRaaS, VoIP, IBM
Power systems and storage hardware with managed IT services. For
more information, please visit http://www.DataStorageCorp.com.
About Flagship Solutions Group
Flagship provides IBM solutions, managed
services, and cloud solutions worldwide. These include data center
strategic planning and hybrid cloud implementations based on a wide
range of assessments that look at virtualization, server
consolidation, security, and infrastructure-focused integration.
Flagship’s managed services include cloud-based server monitoring
and management, 24×7 helpdesk support, and data center
infrastructure management.
Forward-Looking Statements
This press release contains "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995, as amended, that are intended to be covered by
the safe harbor created thereby. Forward-looking statements are
subject to risks and uncertainties that could cause actual results,
performance or achievements to differ materially from any future
results, performance or achievements expressed or implied by such
forward-looking statements. Statements preceded by, followed by or
that otherwise include the words “believes,” “expects,”
“anticipates,” “intends,” “projects,” “estimates,” “plans” and
similar expressions or future or conditional verbs such as “will,”
“should,” “would,” “may” and “could” are generally forward-looking
in nature and not historical facts, although not all
forward-looking statements include the foregoing. The
forward-looking statements include statements regarding the merger
being highly synergistic with the Company’s existing IBM
operations, the timing of the merger being ideal with many
customers migrating to the IBM cloud, the IBM cloud market’s
continued growth and Flagship’s access to additional resources and
infrastructure further accelerating its growth. Although the
Company believes that the expectations reflected in such
forward-looking statements are reasonable, it can provide no
assurance that such expectations will prove to have been correct.
Important factors that could cause actual results to differ
materially from the Company's expectations include, but are not
limited to, the Company’s ability to achieve the synergies expected
with its existing IBM business, the Company’s ability to benefit
from the IBM cloud migration underway, the Company’s ability to
leverage Flagship’s access to additional resources and
infrastructure to further accelerate its growth, the Company’s
ability to position itself for future profitability and the
Company’s ability to maintain its Nasdaq listing. These risks
should not be construed as exhaustive and should be read together
with the other cautionary statements included in the Company’s
Annual Report on Form 10-K for the year ended December 31, 2020,
subsequent Quarterly Reports on Form 10-Q and Current Reports on
Form 8-K filed with the Securities and Exchange Commission. Any
forward-looking statement speaks only as of the date on which it
was initially made. Except as required by law, the Company assumes
no obligation to update or revise any forward-looking statements,
whether as a result of new information, future events, changed
circumstances or otherwise.
Investor Relations Contact: Crescendo
Communications, LLCTel: 212-671-1021Email:
DTST@crescendo-ir.com
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