Kustom Entertainment Sells Video Solutions Business Following Company Rebrand

Kustom Entertainment Inc., formerly Digital Ally Inc., divest its video solutions division. Photo credit: Shutterstock (Przemek Klos).

Posted January 26, 2026

Kustom Entertainment, Inc. announced it will sell off its video solutions division as part of an initiative to better align with the company’s recent rebranding.

Kustom has entered into a non-binding Memorandum of Understanding with Cycurion, Inc. to divest its video solutions division, according to a release. The transaction is expected to be valued between $6.0 million and $8.5 million based on pro forma financial information. The purchase price includes $1 million to $1.4 million in cash, with the remainder to be paid in Cycurion preferred stock.

“This divestiture allows us to sharpen our focus and allocate resources to the massive opportunity we see in the entertainment sector,” CEO of Kustom, Stanton Ross, said in the release. “We are evolving from a regional footprint built on the Country Stampede Music Festival to a national live event and ticketing platform positioned for growth in the $100 billion global entertainment market.”

Kustom, formerly known as Digital Ally, Inc., announced a corporate rebranding earlier in January. The name change reflects a focus on its rapidly growing live event production business and its proprietary online ticketing platform, according to a release at the time. Kustom’s new ticket symbol was updated to “KUST” on January 8.

Following the announcement of a rebrand, Kustom sold its 51% ownership interest in Nobility Healthcare, LLC, a healthcare billing and revenue cycle management subsidiary. Kustom sold its majority stake to the current 49% minority owner for $1.45 million. The transaction resulted in $100,000 in cash and $209,501 in credits for Kustom.

The divestiture of Kustom’s divisions and subsidiaries represents a strategic focus on expanding in the live event management and online ticketing platform business, a sector with an estimated $100 billion global addressable market, the company said in a release.

Kustom produces events such as the Country Stampede Music Festival, which is held annually at the Azura Amphitheater in Bonner Springs, Kansas.