Kustom Entertainment Divests Video Solutions Unit for $6–8.4 Million
Kustom Entertainment has agreed to sell its video solutions division to Cycurion for $6.0–8.4 million, with $1.0–1.4 million in cash and the balance in preferred stock. The transaction transfers $8.0 million of backlog and relieves Kustom of future video surveillance revenue, reinforcing its focus on live events and ticketing.
1. Transaction Terms
Kustom Entertainment will sell its video-solutions division to Cycurion in a deal valued between $6.0 million and $8.4 million. Kustom will receive $1.0 million to $1.4 million in cash at closing and the remaining consideration in Cycurion preferred stock.
2. Backlog and Revenue Impact
The agreement transfers approximately $8.0 million of contracted backlog to Cycurion and shifts an estimated $5.1 million of projected revenue in 2026 away from Kustom. This divestiture removes recurring video-surveillance income from Kustom’s financial profile.
3. Strategic Refocus
Proceeds from the divestiture will fund Kustom’s pivot toward its live events and online ticketing business, its core growth area. Management expects the streamlined operations to enhance capital allocation and sharpen competitive positioning in the ticketing market.