This strategic acquisition brings together Kustom’s established Digital Ally-branded portfolio — including in-car video systems, body-worn cameras, digital evidence management solutions, hardware, software platforms, and related services — with Cycurion’s advanced AI cybersecurity capabilities. The deal is expected to add more than $5 million in annual revenue and over $1.2 million in EBITDA, and provides immediate access to more than 800 new clients, many of which are law enforcement agencies, municipalities, and public safety organizations that align closely with Cycurion’s existing customer base, creating substantial cross-selling opportunities.

The acquired portfolio includes a robust intellectual property portfolio of over 50 patents, strengthening Cycurion’s technology moat in video surveillance, evidence management, and public safety solutions. These patents complement Cycurion’s AI innovations, enabling the development of next-generation integrated platforms that combine real-time video analytics, predictive threat intelligence, and cybersecurity protections.

"We are excited to close this acquisition and take our capabilities to the next level," said L. Kevin Kelly, Chairman and CEO of Cycurion. "By integrating Kustom’s proven video and evidence management technologies with our AI-powered cybersecurity platform, we will continue, and expand, our comprehensive, predictive solutions that go far beyond traditional tools. Our clients will benefit from AI-enhanced video analytics that detect anomalies in real time, automated evidence workflows, and seamless integration with our predictive cyber intelligence systems — all designed to anticipate and mitigate digital risks before they impact public safety operations. Access to this established base of more than 800 clients accelerates our scale and allows us to offer bundled solutions that enhance data security, officer safety, and operational efficiency."

Key benefits of the acquisition include:

Immediate Financial Contribution: Expected addition of more than $5 million in annual revenue and over $1.2 million in EBITDA added at closing.
Expanded AI Product Suite: Enhanced offerings featuring AI-driven video analysis, predictive risk modeling, and integrated cybersecurity for public safety environments.
Intellectual Property Strength: Addition of over 50 patents to bolster innovation in digital evidence management and video technologies.
Client Network Growth: Immediate access to more than 800 new public safety customers, driving revenue synergies through cross-selling of Cycurion’s ARx, Cyber Shield, and managed services alongside the acquired video solutions.
Market Leadership: Positions Cycurion as a one-stop provider of AI-powered public safety technology in a large and growing market.
Scale Milestone: With this closing, Cycurion’s pro forma gross revenue run rate now stands at approximately $30 million, reflecting the contribution of the acquired Business with the Company’s existing operations.

 

Kelly added, "We now serve more than 800 police departments, municipalities, and public safety agencies that rely on Digital Ally’s video and evidence platforms every single day. Every one of our new clients faces the same escalating cyber threats we defend against for our existing clients. The systems that capture and store their evidence must be protected. By layering Cycurion’s cybersecurity solutions onto this installed base, we can turn each single-product customer into a recipient of full-platform protection — protecting the video, the evidence, and the networks behind them — while opening a substantial new stream of recurring revenue that neither Cycurion nor Kustom Entertainment could have reached alone. Notably, a large portion of Digital Ally’s revenue is recurring revenue — precisely the type of financial model Cycurion is building on."

With the closing of this transaction, Cycurion’s gross revenue run rate now stands at approximately $30 million. The acquisition at the same time solidifies the footprint from which the Company expects to drive accelerated organic growth: a base of more than 800 public safety customers, a patent-protected product portfolio, and recurring contract relationships that create a durable platform for expansion. Each new customer relationship becomes a channel for additional Cycurion solutions, each integration deepens the Company’s role in its clients’ daily operations, and the combined offering positions Cycurion to win larger engagements across the public safety and government markets it serves — supporting the Company’s broader growth strategy in predictive resilience and public safety technology.