Cycurion Accelerates June 2026 Closing on $5.5M Video Solutions Acquisition
Cycurion updated its non-binding MOU to acquire Kustom’s legacy video solutions segment for $5.5 million, including $1.25 million cash and a $4.25 million promissory note with warrants and earn-outs. The business contributes $5.1 million in annual revenue and an $8.0 million backlog and is slated to close by June 2026.
1. Revised Memorandum of Understanding
Cycurion and Kustom Entertainment amended their non-binding MOU on April 21, 2026 to accelerate the acquisition of Kustom’s legacy video solutions segment, superseding the January 22, 2026 agreement and preserving exclusivity, confidentiality, and expense allocation provisions.
2. Financial Considerations
The $5.5 million purchase price comprises $1.25 million cash at closing and a $4.25 million secured promissory note, with additional warrants and performance-based earn-out and clawback provisions. Pro forma estimates project $5.1 million in annual revenue and an $8.0 million backlog from established contracts and subscriptions.
3. Expected Closing and Integration
Both parties aim to complete due diligence, execute a definitive agreement, and satisfy customary conditions to close by June 2026. Cycurion plans to integrate the acquired video surveillance and digital evidence management capabilities into its AI-driven ARx cybersecurity platform to enhance public safety solutions.