Cycurion to Acquire Kustom Entertainment Video Unit in July 2026
Cybersecurity firm Cycurion signs deal to buy Kustom Entertainment's video-solutions division, gaining ~1,000 clients and ~58 patents without diluting shareholders.
Cybersecurity company Cycurion, Inc. (NASDAQ: CYCU) announced Sunday that it has signed an Asset Purchase Agreement, dated June 24, 2026, to acquire substantially all assets of Kustom Entertainment's (NASDAQ: KUST) legacy video-solutions segment, with the deal expected to close in early July 2026. The McLean, Virginia-based firm said the transaction is structured to avoid shareholder dilution while dramatically expanding its footprint.
The acquired business encompasses Kustom's full video-solutions operation, spanning hardware development, camera products, software platforms, licensing, support, and ongoing servicing. For Cycurion, which focuses on AI-driven cybersecurity and managed IT security services, the acquisition represents a strategic push into adjacent video technology infrastructure that could complement its existing security offerings.
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The deal is set to deliver approximately 1,000 new client relationships to Cycurion's portfolio, providing immediate commercial scale without the need for organic customer acquisition. Perhaps equally significant, Cycurion stands to inherit a portfolio of roughly 58 patents, a substantial intellectual property base that could support licensing revenue, product development, and competitive positioning in a crowded security technology market.
The non-dilutive structure of the transaction is a notable feature, signaling that Cycurion intends to fund the acquisition without issuing new shares — a move that protects existing investors from ownership dilution at a time when many small-cap companies rely heavily on equity financing. The deal remains subject to customary closing conditions as outlined in the Asset Purchase Agreement.
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