Cycurion will acquire Kustom Entertainment’s video-solutions unit, including 58 patents and Digital Ally-branded in-car systems, body cameras and evidence-management software, for $1.25 million cash, a $4.25 million note, up to $1 million contingent and 2 million warrants. The deal, closing early July, adds about 1,000 customers and boosts recurring revenue prospects.
Cycurion will pay $1.25 million cash, issue a $4.25 million secured promissory note, provide up to $1 million in contingent cash consideration and grant 2 million warrants to acquire Kustom’s video-solutions unit.
The unit comprises Digital Ally-branded in-car video systems, body-worn cameras, digital evidence management solutions and a portfolio of 58 patents covering video surveillance and evidence management technologies.
Integration with Cycurion’s ARx AI cybersecurity platform and Panoptic MDR solutions is expected to create end-to-end offerings, enhance service stickiness and drive higher recurring revenue.
The transaction is slated to close in early July 2026 with terms structured to minimize immediate dilution for existing shareholders while expanding market reach.
