Cycurion, Inc. Provides Update on Revised Memorandum of Understanding to Acquire Kustom Entertainment’s Legacy Video Solutions Segment
Rhea-AI Summary
Cycurion (NASDAQ: CYCU) updated a revised non-binding MOU to acquire Kustom Entertainment’s legacy video solutions segment, accelerating the target close to the beginning of June 2026.
The transaction is expected to add approximately $5.1 million in annual revenue and an estimated $8.0 million backlog; purchase price totals $5.5 million (cash, promissory note, warrants, earn-out).
Positive
- Revenue addition of approximately $5.1 million annually
- Backlog of approximately $8.0 million in established contracts
- Purchase price structured with cash + secured note + warrants
Negative
- MOU non-binding except for exclusivity, confidentiality, and expenses
- Transaction subject to final due diligence and customary closing conditions
News Market Reaction – CYCU
In the Apr 21 session, CYCU declined 3.51%, reflecting a moderate negative market reaction. Argus tracked a trough of -15.8% from its starting point during tracking. Our momentum scanner triggered 5 alerts that day, indicating moderate trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Acquisition Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jan 22 | Acquisition MOU signed | Positive | -0.8% | Initial MOU to acquire Kustom video solutions division with sizable revenue lift. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
The prior Kustom acquisition MOU was received positively in narrative terms but saw a modest -0.78% next-day move, indicating some investor skepticism toward this deal type.
On Jan 22, 2026, Cycurion announced an MOU to acquire Kustom Entertainment’s video solutions division for a contemplated $6.0–$8.4 million, expected to add about $5.1 million of 2026 revenue and roughly $8.0 million of backlog, plus hundreds of subscription contracts and key accounts. That non-binding MOU produced a modest -0.78% reaction. Today’s update revises terms to a $5.5 million purchase price and accelerates the targeted closing to early June 2026, reflecting continued pursuit of the same asset.
Key Terms
memorandum of understanding financial
secured promissory note financial
warrants financial
earn-out financial
clawback financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Both Parties Agree to Accelerate Closing Target Date to Beginning of June 2026
MCLEAN, Va., April 21, 2026 (GLOBE NEWSWIRE) -- Cycurion, Inc. (NASDAQ: CYCU) (“Cycurion” or the “Company”), a leading provider of AI-driven cybersecurity, IT security solutions, and managed services, today provided an update on the revised non-binding Memorandum of Understanding (“MOU”) with Kustom Entertainment, Inc. (NASDAQ: KUST) (“Kustom”) for the acquisition of Kustom’s legacy video solutions segment (the “Business”). The transaction is expected to contribute approximately
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.
“The accelerated timeline reflects the strong alignment between our teams,” said L. Kevin Kelly, Chairman and Chief Executive Officer of Cycurion. “We look forward to integrating these video surveillance and digital evidence management capabilities with our ARx cybersecurity platform to deliver enhanced public safety and security solutions to our customers.”
The MOU remains non-binding, except with respect to certain customary provisions, including exclusivity (no-shop), confidentiality, and expense allocation, and supersedes the prior memorandum of understanding dated January 22, 2026, as amended. As previously disclosed, the agreed purchase price of
About Cycurion, Inc.
Based in McLean, Virginia, Cycurion (NASDAQ: CYCU) is a forward-thinking provider of IT cybersecurity solutions and AI, committed to delivering secure, reliable, and innovative services to clients worldwide. Specializing in cybersecurity, program management, and business continuity, Cycurion harnesses its AI-enhanced ARx platform and expert team to empower clients and safeguard their operations. Along with its subsidiaries, Axxum Technologies LLC, Cloudburst Security LLC, and Cycurion Innovation, Inc., Cycurion serves government, healthcare, and corporate clients committed to securing the digital future. For more information, visit www.cycurion.com.
Forward-Looking Statements
This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements relating to the operations and prospective growth of Cycurion’s business.
Certain statements in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Exchange Act of 1934, as amended. Any statements contained in this press release that are not statements of historical fact may be deemed forward-looking statements. Such statements include, but are not limited to, statements regarding the proposed transaction contemplated by the non-binding MOU, including the likelihood, timing, structure or consummation of the transaction; the anticipated benefits of the transaction; the acceleration of the Company’s inorganic growth strategy; the continued execution on the Company’s backlog; and other statements that are not historical facts, including statements which may be accompanied by words such as “continue,” “will,” “may,” “could,” “should,” “expect,” “expected,” “plans,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” and similar expressions are intended to identify such forward-looking statements. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, many of which are generally outside the control of Cycurion and are difficult to predict. Examples of such risks and uncertainties include, but are not limited to, risks related to customer performance and satisfaction, contract modifications, delays or terminations, and the Company’s ability to fulfill contractual obligations, the outcomes of the Company’s investigations, any potential legal proceedings, or the future performance of the Company’s stock. Additional factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements can be found in the most recent annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K filed by Cycurion with the U.S. Securities and Exchange Commission. Cycurion anticipates that subsequent events and developments may cause its plans, intentions, and expectations to change. Cycurion assumes no obligation, and it specifically disclaims any intention or obligation, to update any forward-looking statements, whether as a result of new information, future events, or otherwise, except as expressly required by law. Forward-looking statements speak only as of the date they are made and should not be relied upon as representing Cycurion’s plans and expectations as of any subsequent date.
Cycurion Investor Relations:
(888) 341-6680
investors@cycurion.com
Cycurion Media Relations:
(888) 341-6680
media@cycurion.com
