Cycurion expands public safety technology portfolio with acquisition of Kustom’s video hardware and software business.
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Cycurion has announced a deal to acquire Kustom Entertainment’s video-solutions division for up to $6.5 million, expanding its presence in the video solutions market with advanced surveillance, camera, and digital evidence technologies. The acquisition highlights the growing demand for AI-powered video surveillance solutions for public safety and the increasing adoption of digital evidence management systems for law enforcement agencies as organizations modernize security operations.
It involves video hardware and camera products, software platforms, and other solutions from Kustom Entertainment’s video solutions division. These include Digital Ally branded in-car video solutions, body worn cameras, and digital evidence management platforms employed by police departments and public safety organizations in the US.
Additionally, the company is known to have 58 patent registrations involving video surveillance, digital evidence management, and video integration technologies. With the acquisition, Cycurion said that it would be gaining access to 1,000 new customers, including governmental and law enforcement agencies.
This transaction includes a mix of cash consideration, secured promissory notes, performance consideration, and stock warrants. The closing of the transaction is anticipated for early July 2026, depending upon regulatory and transaction conditions.
As per information from the company, the business entity that is being acquired by Cycurion brings approximately $5.1 million in annual revenues and approximately $8 million worth of contractual backlog through subscription models and contract terms.
This acquisition follows hard times for Kustom which is suffering from decreased market valuation and pressure on its business performance. The acquisition enables Cycurion to diversify its technology line while improving its cybersecurity and public safety technology solutions portfolio. L. Kevin Kelly, Cycurion's CEO, expressed that this acquisition aligns with the company's strategy of acquiring complementary security technology solutions and growing its customer base.
This action comes in line with industry trends where cybersecurity, artificial intelligence, and video intelligence technologies are increasingly being integrated into one another. Business Honor observes that Cycurion’s acquisition reflects the growing convergence of cybersecurity, AI, and video intelligence as organizations demand smarter public safety solutions.
FAQs
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What is Cycurion acquiring from Kustom?
Cycurion is acquiring Kustom’s video hardware, software platforms, camera products, and digital evidence solutions division.
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How much is the acquisition worth?
The transaction is valued at up to $6.5 million.
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Who uses Kustom’s video solutions?
The solutions are used by law enforcement agencies and public safety organizations.
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Why is video surveillance technology growing?
Organizations are adopting AI-based video solutions for security, monitoring, and evidence management.
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