Cycurion Acquires Kustom's Video Division for $5.5M + Earnout & Warrants
Cycurion, Inc. announced it has entered into an Asset Purchase Agreement to acquire substantially all of the assets comprising Kustom Entertainment, Inc.'s video-solutions division. The acquisition, valued at $1.25 million cash, a $4.25 million secured promissory note, up to $1.0 million in contingent earnout, and warrants for up to 2,000,000 shares, is expected to close in early July 2026. The acquired business, which includes Digital Ally-branded in-car video systems and body-worn cameras, generated approximately $5.1 million in annual revenue and holds an $8.0 million backlog. Cycurion anticipates gaining 1,000 new customer relationships and strengthening its public safety technology platform with recurring revenue opportunities.
Key Highlights
- Cycurion to acquire Kustom Entertainment's video-solutions division.
- Aggregate purchase consideration includes $1.25 million cash and a $4.25 million secured promissory note.
- Contingent cash consideration of up to $1.0 million is payable upon achieving specified earnout conditions.
- Warrants to purchase up to 2,000,000 shares of Cycurion common stock at $2.80 per share are included.
- The acquired business generated approximately $5.1 million in annual revenue.
- The acquired business holds approximately $8.0 million in contracted backlog.
- Cycurion expects to gain access to approximately 1,000 new customer relationships.
- Kustom currently holds approximately 58 patents covering video surveillance and evidence management.
Price Impact
More from CYCU