Kustom Entertainment Revises Sale of its Video Solutions Business

Kustom Entertainment announced it has entered into a revised its deal to sell its video solution business to Cycurion Inc. Photo credit: Shutterstock (Sashkin).

Posted April 20, 2025

Overland Park-based Kustom Entertainment, Inc., announced it has revised its deal with Cycurion, Inc. for the sale of its video solutions business.

The deal was first announced in January, when Kustom Entertainment said it would sell its video solutions division to Cycurion, following Kustom’s rebrand from Digital Ally, Inc. The previously agreed-upon value was between $6.0 million and $8.5 million and the purchase price included $1 million to $1.4 million in cash, with the remainder to be paid in Cycurion preferred stock.

Under the terms of the new agreement, Cycurion will pay an aggregate purchase price of $5.5 million and a $1.25 million cash down payment. It also includes a $4.25 million secured promissory note at 7% interest to be payable in 36 monthly installments. The agreement also includes an earn-out and clawback mechanism capped at $1 million based on the business’s net income milestones. The mechanism has a one-year clawback period and a three-year earn-out period.

Kustom and Cycurion anticipate the transaction will close on or before June 30, 2026.

“We are pleased to have reached an agreement on the revised economic terms of this divestiture,” CEO of Kustom, Stanton Ross, said in a release. “This moves us into the final stretch of a transition that allows Kustom Entertainment to focus on its core growth initiatives while ensuring our legacy video customers continue to receive high-level service under Cycurion’s stewardship.”

Kustom is an event production company that manages the Country Stampede Music Festival, which is held annually at the Azura Amphitheater in Bonner Springs, Kansas.

Based in McLean, Virginia, Cycurion specializes in cybersecurity, program management, and business continuity solutions while offering its AI-enhanced ARx platform to clients in government, healthcare and corporate sectors. The company has a portfolio of subsidiaries, including Axxum Technologies LLC, Cloudburst Security LLC and Cycurion Innovation, Inc.