Cycurion announced an agreement to acquire Kustom Entertainment’s video-solutions business, adding about $5.1 million in annual revenue and access to ~1,000 clients.
Key Highlights:
- Entered Asset Purchase Agreement to buy Kustom’s video-solutions division; closing expected in early July 2026.
- Consideration: $1.25M cash, $4.25M secured promissory note (7% interest, 3‑yr), up to $1M earnout, and warrants for up to 2M shares.
- Acquisition includes ~58 patents and Digital Ally-branded in-car/body cameras and digital evidence management products.
- Transaction provides access to ~1,000 new customer relationships and ~ $8.0M contracted backlog, largely recurring revenue.
- Structured to limit immediate equity dilution and aimed at cross-selling with ARx AI cybersecurity and Panoptic MDR to drive recurring revenue.
Original SEC Filing:
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