Cycurion, Inc. has entered into a definitive asset purchase agreement to acquire the video-solutions division of Kustom Entertainment, Inc. The acquisition includes the Digital Ally-branded product line of in-car video systems and body-worn cameras, a portfolio of approximately 58 patents, and a customer base of around 1,000 clients, primarily in the public safety sector. The transaction is expected to close in early July 2026 and aims to build a comprehensive public safety technology platform.
Key Details
- Purchase Consideration: The total consideration consists of $1.25 million in cash, a $4.25 million secured promissory note, up to $1.0 million in contingent earnouts, and warrants to purchase 2 million shares of CYCU stock at $2.80 per share.
- Acquired Business Financials: The video-solutions business generates approximately $5.1 million in annual revenue and holds a contracted backlog of roughly $8.0 million.
- Strategic Impact: The deal provides Cycurion with approximately 1,000 new customer relationships, creating immediate cross-selling opportunities for its AI-driven cybersecurity and managed services.
- Timeline: The Asset Purchase Agreement was signed on June 24, 2026, with the closing anticipated in early July 2026, subject to customary conditions.