Cycurion, Inc. Announces a Memorandum of Understanding (“MOU”) to Acquire the Video Solutions Division of Kustom Entertainment, Inc.

Core Viewpoint - Cycurion, Inc. has entered into a Memorandum of Understanding to acquire the video-solutions division of Kustom Entertainment, Inc., aiming to enhance integrated public safety and cybersecurity solutions while increasing revenue and cross-selling opportunities [1][2][3] Financial Overview - The acquisition is valued between $6.0 million and $8.4 million, with a cash payment of $1.0 million to $1.4 million and the remainder in Cycurion preferred stock [2] - The addition of Kustom's video-solutions division is expected to increase Cycurion's revenues by approximately $5.1 million, or 35%, in 2026 compared to 2025, along with an $8.0 million backlog from established contracts [2][5] Strategic Benefits - The acquisition is anticipated to provide immediate access to Kustom's extensive client base, which includes agencies from all 50 U.S. states and over 30 countries, enhancing cross-selling opportunities [4][5] - Cycurion expects to generate approximately $100,000 per month in additional revenue through cross-selling integrated cybersecurity and video solutions [11] Operational Synergies - The integration of Kustom's high-margin recurring models with Cycurion's cybersecurity services is expected to create bundled offerings and operational efficiencies, leading to accelerated profitability in the public safety market [5][11] - The combination of Kustom's video surveillance technologies with Cycurion's cybersecurity expertise is projected to enable secure data transmission and enhance incident response capabilities [11] Shareholder Impact - The transaction is expected to be transformative and accretive for Cycurion shareholders, delivering immediate top- and bottom-line growth while strengthening recurring revenue [3][5] - A significant portion of the purchase price will be paid in Cycurion's preferred stock, aligning Kustom shareholders with Cycurion's long-term growth potential [5][7]