KUST News & Events

Cycurion (CYCU) announced that it has entered into an asset purchase agreement with Kustom Entertainment (KUST) to acquire substantially all of the assets comprising Kustom's video-solutions division, including the development, sale, licensing, support and servicing of video hardware, camera products, platforms, software and software solutions, subject to the satisfaction or waiver of closing conditions as set forth in the asset purchase agreement. Closing is expected in early July. Subject to closing, the aggregate purchase consideration is expected to consist of a cash payment of $1.25M, a $4.25M secured promissory note, contingent cash consideration of up to $1M payable only upon the achievement of specified earnout conditions, and warrants to purchase up to 2,000,000 shares of Cycurion common stock. The transaction structure is intended to align a substantial portion of the consideration with future performance while limiting immediate equity dilution to existing stockholders. Upon closing, Cycurion expects to gain access to approximately 1,000 new customer relationships, including numerous police departments and municipal agencies where the company already provides cybersecurity and managed services. These overlapping relationships create immediate opportunities for cross-selling integrated video, evidence management, and AI-driven security solutions. Based on information from the seller, the business generated approximately $5.1M in annual revenue and holds approximately $8M in contracted backlog, primarily from recurring subscriptions and multi-year contracts. Cycurion believes the acquisition can enhance operating leverage and support margin expansion, although there can be no assurance that these benefits will be realized.

Kustom Entertainment (KUST) announced it has entered into a binding agreement for the divestiture of its legacy video solutions division to Cycurion (CYCU). The transaction represents a key operational milestone in Kustom's planned corporate overhaul, following the divestiture of its medical billing business earlier this year and the company's recently announced multi-year partnership between its wholly owned subsidiary, Kustom 440 and Ruffin Properties, owner of Gilley's Park City. The consideration includes: $5.5M in total consideration, including $1.25M in upfront cash and a $4.25M secured promissory note payable over 36 months at 7% interest. Kustom will receive 2M warrants to purchase Cycurion common stock, giving the Company potential upside from Cycurion's future market performance as the legacy video solutions division is integrated into Cycurion's security business. The divestiture is expected to close in July, subject to the satisfaction of customary closing conditions. Based on total consideration of $5.5M, the transaction equates to approximately $5.33 per estimated current outstanding common share.

Kustom Entertainment Inc trading halted, news pending

Cycurion (CYCU) provided an update on the revised non-binding Memorandum of Understanding, MOU, with Kustom Entertainment (KUST) for the acquisition of Kustom's legacy video solutions segment. The transaction is expected to contribute approximately $5.1M in annual revenue and an estimated $8M backlog comprised of established contracts and recurring subscription revenue. These figures are based on the pro forma financials jointly prepared by both parties and are consistent with the segment's historical performance. Both parties plan to work diligently to close the transaction as quickly as possible, targeting completion by the beginning of June 2026, subject to final due diligence, execution of a definitive agreement, and satisfaction of customary closing conditions.