Data Storage Corporation Merges Flagship Solutions Group and Data Storage FL

Data Storage Corporation entered into a definitive agreement with Flagship Solutions, LLC to merge its wholly-owned subsidiary, Data Storage FL, LLC, into Flagship, with Flagship Solutions Group being the surviving company in the merger and becoming, as a result, a wholly-owned subsidiary of the company.

Upon completion of the transaction, Mark Wyllie, Flagship’s CEO, will continue as CEO of the new Flagship subsidiary, and will join Data Storage Corporation’s board of directors.

Flagship is a provider of IBM solutions, managed services and cloud solutions worldwide. These include data center strategic planning and hybrid cloud implementations, which are based on a wide range of assessments that look at virtualization, server consolidation, security, and infrastructure-focused integration.

Its managed services include cloud-based server monitoring and management, 24×7 helpdesk support, and data center infrastructure management. As an IBM Gold business partner, it has received acknowledgements for delivering capabilities and services including their work with NASCAR and the Atlanta Falcons. The company, through their trademarked “Infralytics” offerings, has achieved double-digit CAGR for the last 5 years since focusing on the IBM Cloud.

“We are pleased to announce this transformative merger as we believe this transaction will be highly synergistic with our existing IBM business and we anticipate meaningful operation efficiency through the integration of our two organizations,” stated Chuck Piluso, CEO of Data Storage Corporation. “Importantly, this merger provides us a comprehensive one-stop provider approach that allows us to cross-sell solutions across our respective enterprise, as well as middle-market customers. We continue to provide a wide array of multicloud information technology solutions in highly secure, 100% reliable enterprise cloud services for companies using IBM Power systems, Windows and Linux, including infrastructure as-a service; DRaaS; cyber security-as-a-service; and data analytics-as-a-service. Flagship has a first class customer base including premier companies across a wide array of sectors such as banking and finance, education, healthcare, manufacturing, retail, sports and entertainment, real estate, insurance, telecom, travel, transportation and more.“

“The timing of this transaction is ideal, as IBM has begun migrating services to its market partners, allowing us to aggressively capitalize on new opportunities due to the shift in market dynamics,” noted Hal Schwartz, founder and EVP, Data Storage Corporation. “We are witnessing rapid overall growth in demand for cloud-based services. According to a recent Gartner report (IT Services, Worldwide, 2018-2024, 2Q20 Update), the managed services and cloud infrastructure services market worldwide is estimated to be $410 billion in 2020 and is expected to grow 7% annually to $502 billion in 2023. As a result of this merger, we are well positioned to capture market share and continue as a leader in the space.”

Piluso continued: “I am looking forward to welcoming Mark Wyllie to our organization, as he brings more than 30 years of senior management and sales experience. Overall, the market for is ripe for consolidation of cloud solutions, such as BC and DR protection. This merger is perfectly aligned with our overall goals, as it leapfrogs our capabilities, further establishes our position as a leader in the market. We expect it will be highly accretive for shareholders.”

Wyllie, CEO of Flagship, further noted: “In today’s competitive marketplace, it’s key to leverage synergies and joining forces with DSC at this exciting time in the evolution of our industry, provides a meaningful competitive advantage. storage adds resources, infrastructure and critical mass that we believe will allow Flagship to accelerate its own organic growth and provide significant value for our combined companies after the merger.”