Cycurion To Acquire Kustom's Video Solutions Unit – Why CYCU Is Bullish On This Business

With this acquisition, Cycurion will be able to combine Kustom’s video and evidence management capabilities with its AI-powered cybersecurity platform and the recently acquired Panoptic threat visibility and MDR solutions.

• Cycurion said that the video solutions business includes Digital Ally-branded in-car video systems, body-worn cameras, and digital evidence management solutions.
• The company said that the deal is expected to minimize immediate dilution to existing shareholders and close in early July 2026.
• Cycurion expects to offer end-to-end solutions that will improve its recurring revenue and support profitable growth.

Shares of Cycurion Inc. (CYCU) drew investor attention on Monday after the company announced that it has entered into an asset purchase agreement with Kustom Entertainment to buy all its assets comprising Kustom’s video-solutions unit.

Cycurion stated that the video solutions business includes Digital Ally-branded in-car video systems, body-worn cameras, and digital evidence management solutions used by various law enforcement bodies and public safety organizations.

At the time of writing, CYCU stock was up over 2% on Monday.

Why Is CYCU Buying Kustom’s Video Division?

The company added that Kustom holds a portfolio of about 58 patents that cover video surveillance, evidence management, and other technologies, with more patents pending. 

With this acquisition, the company will be able to combine Kustom’s video and evidence management capabilities with Cycurion’s ARx AI-powered cybersecurity platform and the recently acquired Panoptic threat visibility and MDR solutions. 

The firm expects to offer end-to-end solutions that will improve its recurring revenue and support profitable growth. After concluding, Cycurion will gain access to about 1,000 new customer relationships, including police departments and municipal agencies where the company already offers cybersecurity and managed services. 

Contours of The Deal

The company said that the deal is expected to minimize immediate dilution to existing shareholders and close in early July 2026.

The transaction includes a cash payment of $1.25 million, a $4.25 million secured promissory note, contingent cash consideration of up to $1.0 million payable upon achievement of certain milestones, and warrants for approximately 2 million shares of Cycurion common stock.

“Cycurion’s deep relationships with the law enforcement agencies we serve, combined with their AI-driven cybersecurity expertise, positions them to grow this business far beyond what we could alone, “ said Stanton E. Ross, Chief Executive Officer at Kustom Entertainment.

What Retail Thinks Of CYCU

On Stocktwits, retail sentiment surrounding the stock has improved to ‘neutral’ from ‘bearish’ amid ‘low’ message volumes in the past 24 hours.

CYCU stock has dropped over 77% so far this year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.