Kustom Entertainment's Video Solutions Division Acquired by Cycurion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 22 2026
0mins
Kustom Entertainment's stock fell sharply, crossing below the 5-day SMA, as the company announced the acquisition of its video solutions division by Cycurion for $1.25 million in cash and a $4.25 million secured promissory note.
The acquisition, signed on June 24, 2026, is expected to close in early July and will provide Cycurion access to approximately 1,000 new customer relationships, enhancing its public safety technology offerings. Kustom's video solutions division generates about $5.1 million in annual revenue and holds an $8.0 million contracted backlog, which could improve Cycurion's operating leverage, although future benefits are not guaranteed.
This acquisition reflects a strategic move for both companies, with Kustom focusing on its core entertainment business while Cycurion expands its market share in public safety technology. Investors may be cautious as the stock reacts to this significant change.
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Analyst Views on KUST
About KUST
Kustom Entertainment, Inc. is focused on live event production and ticketing technology. The Company specializes in large-scale music festivals and end-to-end event management. Its flagship event, Country Stampede, is held annually at the Azura Amphitheater in Bonner Springs, Kansas. Its segments include Video Solutions and the Entertainment Segment. The Video Solutions segment includes both service and product through its subscription models offering cloud and warranty solutions, and hardware sales for video and health safety solutions. Its products include the EVO-HD, DVM-800 and DVM-800 Lite, which are in-car digital video systems for law enforcement and commercial markets. The Entertainment segment includes the Company’s ticketing and live-event operations and, through its TicketSmarter platform and related entertainment brands, acting as an intermediary between ticket buyers and sellers and purchasing ticket inventory from primary sources for resale through various channels.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Kustom Entertainment Achieves Record Attendance at Country Stampede Festival
- Record Attendance: Kustom Entertainment's 30th anniversary Country Stampede festival attracted over 42,000 attendees, exceeding projections by 10,000, marking the highest turnout in Bonner Springs' history and demonstrating strong market demand and brand appeal.
- Ticket Sales Surge: Multiple ticket classes sold out before the festival, including Thursday's General Admission and Party Pit, with remaining inventory extremely limited, reflecting robust consumer interest and engagement in live events.
- Strategic Partnership Outlook: Kustom's multi-season partnership with Ruffin Properties, effective in 2027, is expected to nearly double venue capacity to accommodate up to 35,000 daily attendees, enhancing the company's competitive edge in the live entertainment market.
- Leadership Vision: CEO Stan Ross emphasized the company's commitment to delivering value beyond expectations for every event, aiming to elevate audience experiences and artist interactions, thereby raising industry standards across live events and ticketing.
See More
Cycurion Acquires Kustom's Video Solutions Division to Enhance Public Safety Technology
- Acquisition Agreement: Cycurion signed an Asset Purchase Agreement with Kustom Entertainment on June 24, 2026, to acquire Kustom's video solutions division for $1.25 million in cash and a $4.25 million secured promissory note, with closing expected in early July 2026, thereby strengthening its leadership in public safety technology.
- Customer Relationship Expansion: The acquisition will provide Cycurion access to approximately 1,000 new customer relationships, including various law enforcement and municipal agencies, enabling cross-selling of integrated video and evidence management solutions leveraging existing cybersecurity services, which enhances market share and customer loyalty.
- Financial Performance Enhancement: Kustom's video business generates approximately $5.1 million in annual revenue and holds about $8.0 million in contracted backlog, primarily from recurring subscriptions and multi-year contracts, which is expected to enhance Cycurion's operating leverage and margins, although future benefits are not guaranteed.
- Strategic Synergies: By integrating Kustom's established video management capabilities with Cycurion's ARx AI cybersecurity platform and Panoptic solutions, Cycurion anticipates launching differentiated full-spectrum offerings that drive higher-margin recurring revenue growth, further achieving sustainable profitability.
See More
Cycurion Acquires Kustom's Video Solutions Division to Enhance Public Safety Technology
- Acquisition Overview: On June 24, 2026, Cycurion signed an Asset Purchase Agreement with Kustom Entertainment to acquire Kustom's video solutions division for $1.25 million in cash, a $4.25 million secured promissory note, and up to $1 million in performance-based cash, with closing expected in early July 2026, aimed at enhancing its public safety technology platform.
- Customer Relationship Expansion: The acquisition is expected to provide Cycurion access to approximately 1,000 new customer relationships, primarily including various law enforcement departments and municipal agencies, creating immediate opportunities for cross-selling integrated video and AI-driven security solutions, which is anticipated to drive revenue growth.
- Financial Impact Analysis: Kustom's video solutions division generated approximately $5.1 million in annual revenue and holds around $8.0 million in contracted backlog, primarily from recurring subscriptions and multi-year contracts, with Cycurion believing that the acquisition can enhance operating leverage and support margin expansion, although there is no assurance that these benefits will be realized.
- Strategic Execution and Market Positioning: Cycurion's CEO stated that this acquisition demonstrates the company's ongoing focus on value creation, and by integrating Kustom's established video management capabilities with its own AI cybersecurity platform, it expects to strengthen its competitive position in public safety technology and drive higher-margin recurring revenue.
See More
Kustom Entertainment Sells Video Solutions Division to Cycurion
- Strategic Transition Completed: Kustom Entertainment's sale of its legacy video solutions division to Cycurion signifies the completion of its transition to a pure-play live entertainment and ticketing business, with a total transaction value of up to $5.5 million, including $1.25 million in cash and a $4.25 million secured promissory note at 7% interest.
- Future Upside Potential: Kustom will also receive 2 million warrants to purchase Cycurion common stock, providing potential upside tied to Cycurion's future performance, thereby enhancing Kustom's market position in the live entertainment sector.
- Continued Focus: This divestiture follows Kustom's earlier sale of its medical billing business, indicating a strategic commitment to concentrate on live event production and online ticketing operations to strengthen its core competencies.
- Positive Market Reaction: KUST stock surged 71% during Thursday's pre-market trading, reflecting strong market confidence in the company's strategic shift and significantly boosting investor sentiment regarding future growth prospects.
See More
Kustom Entertainment Divests Video Solutions to Focus on Live Events
- Strategic Restructuring: Kustom Entertainment has entered into an agreement with Cycurion to divest its legacy video solutions division for a total consideration of $5.5 million, aiming to accelerate the company's transition towards rapidly growing live event production and online ticketing operations, thereby enhancing operational efficiency and market competitiveness.
- Enhanced Financial Flexibility: The transaction includes $1.25 million in cash and a $4.25 million secured promissory note, expected to close in July 2026, which enhances Kustom's near-term financial flexibility while providing potential long-term equity upside.
- Festival Expansion: Kustom's flagship event, the Country Stampede Music Festival, will move to Gilley’s Park City in 2027, nearly doubling its audience capacity to 35,000, further enhancing the live experience and attracting more attendees, thereby strengthening brand influence.
- Market Opportunities: This restructuring allows Kustom to focus on a $100 billion global market, with the CEO stating that this move will enable the company to better capitalize on growth opportunities in the entertainment sector and drive its expansion plans nationwide.
See More
Global Dance Music Festival Set for Kansas City
- Major Music Event: Kustom Entertainment is set to host the Global Frequencies EDM event on June 28, 2026, at Azura Amphitheater, expected to draw a large crowd and elevate Kansas City's status as a music destination.
- Star-Studded Lineup: The first wave of confirmed artists includes DJ Diesel (Shaquille O'Neal), Loud Luxury, TroyBoi, Alison Wonderland, and KSHMR, all renowned electronic music artists who will deliver electrifying performances, enhancing the event's appeal.
- Event Timing: Global Frequencies follows the three-day Country Stampede festival, showcasing Kustom Entertainment's strategic approach to diversifying music events and aiming to transform Kansas City into a summer music hub.
- Market Potential: Matt Tholen, VP of Kustom Entertainment, stated that this event will provide an unprecedented EDM experience for Kansas City, likely attracting more visitors and music enthusiasts, thereby boosting the local economy.
See More
Kustom Entertainment Achieves Record Attendance at Country Stampede Festival
- Record Attendance: Kustom Entertainment's 30th anniversary Country Stampede festival attracted over 42,000 attendees, exceeding projections by 10,000, marking the highest turnout in Bonner Springs' history and demonstrating strong market demand and brand appeal.
- Ticket Sales Surge: Multiple ticket classes sold out before the festival, including Thursday's General Admission and Party Pit, with remaining inventory extremely limited, reflecting robust consumer interest and engagement in live events.
- Strategic Partnership Outlook: Kustom's multi-season partnership with Ruffin Properties, effective in 2027, is expected to nearly double venue capacity to accommodate up to 35,000 daily attendees, enhancing the company's competitive edge in the live entertainment market.
- Leadership Vision: CEO Stan Ross emphasized the company's commitment to delivering value beyond expectations for every event, aiming to elevate audience experiences and artist interactions, thereby raising industry standards across live events and ticketing.
See More
Cycurion Acquires Kustom's Video Solutions Division to Enhance Public Safety Technology
- Acquisition Agreement: Cycurion signed an Asset Purchase Agreement with Kustom Entertainment on June 24, 2026, to acquire Kustom's video solutions division for $1.25 million in cash and a $4.25 million secured promissory note, with closing expected in early July 2026, thereby strengthening its leadership in public safety technology.
- Customer Relationship Expansion: The acquisition will provide Cycurion access to approximately 1,000 new customer relationships, including various law enforcement and municipal agencies, enabling cross-selling of integrated video and evidence management solutions leveraging existing cybersecurity services, which enhances market share and customer loyalty.
- Financial Performance Enhancement: Kustom's video business generates approximately $5.1 million in annual revenue and holds about $8.0 million in contracted backlog, primarily from recurring subscriptions and multi-year contracts, which is expected to enhance Cycurion's operating leverage and margins, although future benefits are not guaranteed.
- Strategic Synergies: By integrating Kustom's established video management capabilities with Cycurion's ARx AI cybersecurity platform and Panoptic solutions, Cycurion anticipates launching differentiated full-spectrum offerings that drive higher-margin recurring revenue growth, further achieving sustainable profitability.
See More
Cycurion Acquires Kustom's Video Solutions Division to Enhance Public Safety Technology
- Acquisition Overview: On June 24, 2026, Cycurion signed an Asset Purchase Agreement with Kustom Entertainment to acquire Kustom's video solutions division for $1.25 million in cash, a $4.25 million secured promissory note, and up to $1 million in performance-based cash, with closing expected in early July 2026, aimed at enhancing its public safety technology platform.
- Customer Relationship Expansion: The acquisition is expected to provide Cycurion access to approximately 1,000 new customer relationships, primarily including various law enforcement departments and municipal agencies, creating immediate opportunities for cross-selling integrated video and AI-driven security solutions, which is anticipated to drive revenue growth.
- Financial Impact Analysis: Kustom's video solutions division generated approximately $5.1 million in annual revenue and holds around $8.0 million in contracted backlog, primarily from recurring subscriptions and multi-year contracts, with Cycurion believing that the acquisition can enhance operating leverage and support margin expansion, although there is no assurance that these benefits will be realized.
- Strategic Execution and Market Positioning: Cycurion's CEO stated that this acquisition demonstrates the company's ongoing focus on value creation, and by integrating Kustom's established video management capabilities with its own AI cybersecurity platform, it expects to strengthen its competitive position in public safety technology and drive higher-margin recurring revenue.
See More
Kustom Entertainment Sells Video Solutions Division to Cycurion
- Strategic Transition Completed: Kustom Entertainment's sale of its legacy video solutions division to Cycurion signifies the completion of its transition to a pure-play live entertainment and ticketing business, with a total transaction value of up to $5.5 million, including $1.25 million in cash and a $4.25 million secured promissory note at 7% interest.
- Future Upside Potential: Kustom will also receive 2 million warrants to purchase Cycurion common stock, providing potential upside tied to Cycurion's future performance, thereby enhancing Kustom's market position in the live entertainment sector.
- Continued Focus: This divestiture follows Kustom's earlier sale of its medical billing business, indicating a strategic commitment to concentrate on live event production and online ticketing operations to strengthen its core competencies.
- Positive Market Reaction: KUST stock surged 71% during Thursday's pre-market trading, reflecting strong market confidence in the company's strategic shift and significantly boosting investor sentiment regarding future growth prospects.
See More
Kustom Entertainment Divests Video Solutions to Focus on Live Events
- Strategic Restructuring: Kustom Entertainment has entered into an agreement with Cycurion to divest its legacy video solutions division for a total consideration of $5.5 million, aiming to accelerate the company's transition towards rapidly growing live event production and online ticketing operations, thereby enhancing operational efficiency and market competitiveness.
- Enhanced Financial Flexibility: The transaction includes $1.25 million in cash and a $4.25 million secured promissory note, expected to close in July 2026, which enhances Kustom's near-term financial flexibility while providing potential long-term equity upside.
- Festival Expansion: Kustom's flagship event, the Country Stampede Music Festival, will move to Gilley’s Park City in 2027, nearly doubling its audience capacity to 35,000, further enhancing the live experience and attracting more attendees, thereby strengthening brand influence.
- Market Opportunities: This restructuring allows Kustom to focus on a $100 billion global market, with the CEO stating that this move will enable the company to better capitalize on growth opportunities in the entertainment sector and drive its expansion plans nationwide.
See More
Global Dance Music Festival Set for Kansas City
- Major Music Event: Kustom Entertainment is set to host the Global Frequencies EDM event on June 28, 2026, at Azura Amphitheater, expected to draw a large crowd and elevate Kansas City's status as a music destination.
- Star-Studded Lineup: The first wave of confirmed artists includes DJ Diesel (Shaquille O'Neal), Loud Luxury, TroyBoi, Alison Wonderland, and KSHMR, all renowned electronic music artists who will deliver electrifying performances, enhancing the event's appeal.
- Event Timing: Global Frequencies follows the three-day Country Stampede festival, showcasing Kustom Entertainment's strategic approach to diversifying music events and aiming to transform Kansas City into a summer music hub.
- Market Potential: Matt Tholen, VP of Kustom Entertainment, stated that this event will provide an unprecedented EDM experience for Kansas City, likely attracting more visitors and music enthusiasts, thereby boosting the local economy.
See More
