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Cycurion Plans Acquisition of Kustom Entertainment Video Division

Story Highlights
  • Cycurion signed an MOU on January 22, 2026 to acquire Kustom’s video solutions division, aiming to expand its secure public safety and video offerings.
  • The largely equity-funded deal is projected to be earnings-accretive, lifting 2026 revenue by about 35% and boosting backlog and cross-selling opportunities across hundreds of global clients, subject to closing conditions.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Cycurion Plans Acquisition of Kustom Entertainment Video Division

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The latest update is out from Cycurion ( (CYCU) ).

On January 22, 2026, Cycurion, Inc. announced it had signed a non-binding memorandum of understanding to acquire the video solutions division of Kustom Entertainment, Inc., a developer of body-worn cameras, in-car video systems, and digital evidence management tools for law enforcement, public safety, and commercial customers. The contemplated deal, valued at $6.0 million to $8.4 million with a predominantly equity-based purchase price and limited cash component, is designed to be accretive by adding about $5.1 million in annual revenue in 2026—roughly a 35% uplift versus 2025—as well as an $8.0 million secured backlog and more than 300 subscription contracts across roughly 400 key accounts globally. Management highlights the strategic fit between Kustom’s video and evidence-management technologies and Cycurion’s AI-powered cybersecurity platforms, positioning the combined business to offer integrated, end-to-end public safety and cyber-secure video solutions, unlock cross-selling into Kustom’s broad client base, and support margin expansion through high‑margin recurring revenues, though closing remains subject to customary approvals and the parties are not obligated to complete the transaction.

The most recent analyst rating on (CYCU) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Cycurion stock, see the CYCU Stock Forecast page.

Spark’s Take on CYCU Stock

According to Spark, TipRanks’ AI Analyst, CYCU is a Neutral.

The score is held down mainly by deteriorating TTM financial performance (sharp profitability collapse and continued negative free cash flow) and a clearly bearish technical setup (price below major moving averages with negative MACD). Valuation provides only limited support because the negative P/E reflects current losses and dividend yield data is unavailable.

To see Spark’s full report on CYCU stock, click here.

More about Cycurion

Cycurion, Inc., based in McLean, Virginia, is a NASDAQ-listed provider of AI-driven cybersecurity, IT security solutions, and managed services, specializing in cybersecurity, program management, and business continuity. Leveraging its AI-enhanced ARx platform and operating through subsidiaries including Axxum Technologies, Cloudburst Security, and Cycurion Innovation, the company serves government, healthcare, and corporate clients worldwide that require secure, reliable digital infrastructure.

Average Trading Volume: 1,490,716

Technical Sentiment Signal: Sell

Current Market Cap: $8.78M

Find detailed analytics on CYCU stock on TipRanks’ Stock Analysis page.

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