Kustom Entertainment Shares Surge 40.28% After Video Division Sale Announcement
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 28 2026
0mins
Source: Benzinga
- Stock Surge: Kustom Entertainment Inc. shares jumped 40.28% in after-hours trading to $2.96, reflecting strong market sentiment following the announcement of its video solutions division divestiture.
- Video Division Sale Agreement: The company entered a non-binding Memorandum of Understanding with Virginia-based Cycurion Inc. for a transaction valued between $6 million and $8.5 million, with $1 million to $1.4 million in cash and the remainder in Cycurion preferred stock.
- Strategic Shift to Live Events: This divestiture allows Kustom to sharpen its focus on live event production and proprietary online ticketing, aligning with its Nasdaq rebranding strategy, as CEO Stanton E. Ross emphasized the significant opportunities in the entertainment sector.
- Market Performance Analysis: Kustom's Relative Strength Index (RSI) stands at 43.19, with a market capitalization of $1.69 million; the stock has a 52-week high of $4.48 and a low of $1.80, indicating that its recovery potential needs further confirmation given its proximity to the low end of its range.
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Analyst Views on CYCU
About CYCU
Cycurion, Inc. is a cybersecurity and artificial intelligence (AI)-powered information technology (IT) solutions provider. The Company provides custom solutions for its clients by adapting its knowledge base to create solutions to serve its client's IT and cybersecurity needs. Its consulting and advisory services include security control assessments, security architecture and engineering, risk management and compliance audits, staff augmentation, cybersecurity awareness and training, cloud security, virtual CISO support, and digital modernization. Its Managed Security Service includes 24/7 monitoring, threat detection, incident response, and remediation. The Cycurion ARx platform is a turnkey web application protection and managed security solution that combines the essential cybersecurity layers in a customizable platform. Its platform offers Geo Gate Protection, denial-of-service (DoS) Protection, Web Application Firewall (WAF) and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Technology Integration and Capability Expansion: This acquisition will bolster Cycurion's managed detection and response, threat management, and compliance capabilities, while complementing its HavenX platform with Secuvant's automation and risk management tools, thereby improving service quality and customer satisfaction.
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- Additional Funding: There are two additional one-year options for funding periods.
See More
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- Revenue and Profit Expectations: The acquisition is expected to add approximately $3 million in annualized revenue and $1.5 million in EBITDA in fiscal 2026, indicating that the deal will significantly enhance the company's financial performance and market competitiveness.
- Technology Integration and Capability Expansion: This acquisition will bolster Cycurion's managed detection and response, threat management, and compliance capabilities, while complementing its HavenX platform with Secuvant's automation and risk management tools, thereby improving service quality and customer satisfaction.
- Transaction Completion Timeline: The transaction is expected to close within seven to ten days, subject to customary closing conditions, demonstrating the company's commitment to executing strategic acquisitions swiftly.
See More
Cycurion Acquires Secuvant to Enhance Cybersecurity Capabilities
- Strategic Acquisition: Cycurion acquires Secuvant for approximately $2.875 million, expected to contribute $3 million in annual revenue and $1.5 million in EBITDA for fiscal year 2026, significantly enhancing its competitive edge in mid-market and enterprise clients.
- Technology Integration: Secuvant's cyber risk management and SOC-as-a-Service capabilities seamlessly integrate with Cycurion's AI-powered ARx platform, providing comprehensive protection from risk assessment to automated detection and rapid response, thereby enhancing client security capabilities.
- Operational Efficiency Gains: By integrating HavenX and Secuvant's technologies, Cycurion achieves highly automated, low-manual workflows that significantly reduce operational costs and accelerate threat mitigation, reinforcing its leadership in regulated industries and critical infrastructure.
- Future Growth Potential: This acquisition not only accelerates Cycurion's revenue growth but also opens new opportunities for high-margin technology-enabled services by providing continuous 24/7 protection and intelligent vulnerability prioritization, further solidifying its market position.
See More
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- Strategic Acquisition: Cycurion announced the acquisition of Halo Privacy, expected to close by the end of June 2026, significantly expanding its core capabilities in national security and cybersecurity, thereby enhancing its market position in both government and private sectors.
- Revenue Growth: Halo Privacy generated $7 million in total revenue in 2025, with $5.5 million in high-quality annual recurring revenue (ARR), demonstrating a stable revenue model anchored by long-term contracts with U.S. government agencies, which constitute approximately 95% of its business.
- Technology Integration: The integration of HavenX's digital investigation and cybersecurity expertise with Halo Privacy's secure communications infrastructure creates a seamless AI-augmented platform that provides proactive intelligence and effective defense capabilities, enhancing overall service security in hostile digital environments.
- Market Expansion Opportunities: Cycurion plans to leverage Halo Privacy's technology for investment banks, healthcare organizations, and high-net-worth individuals, addressing the growing demand for secure communications, which is expected to drive rapid growth in the private sector.
See More
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- Acquisition Agreement: Cycurion has executed a binding agreement to acquire Halo Privacy, expecting to close the transaction within 45 days, which will add approximately $7 million in revenue and $5.5 million in annual recurring revenue, significantly enhancing the company's financial performance.
- Strategic Transformation: This acquisition aligns with CEO Kevin Kelly's vision to transform Cycurion into a technology-driven AI security company, expanding into the retail consumer market and greatly increasing accessibility to enterprise-grade security tools.
- Product Integration and Synergies: The combination of Halo Privacy's Halo Link application with HavenX's digital investigation capabilities provides secure anonymous communications and real-time threat attribution, enhancing overall operational efficiency for public safety and national security users.
- Market Expansion Potential: Through this acquisition, Cycurion not only strengthens its competitive position in the secure communications and digital privacy markets but also lays the groundwork for future growth, expected to attract more government and enterprise clients and drive sustained development.
See More
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- Long Contract Duration: The base term of the contract is three years, with two additional one-year option periods, allowing the company to potentially secure more revenue over the next five years, with an expected annual lock-in of $15 to $17 million from 2026 to 2028.
- Confidence in Business Growth: Cycurion's total contracted backlog has reached $112 million, and with the addition of this new contract, the company has increased visibility into future revenues, with the CEO expressing confidence in sustained growth that will drive the execution of its profitable growth strategy.
- Enhanced Market Position: This contract win not only solidifies Cycurion's standing in the municipal technology services market but also highlights its role as a trusted partner for large government entities, driving business development in cybersecurity and digital transformation.
See More
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- Contract Duration: The contract is set for three years.
- Additional Funding: There are two additional one-year options for funding periods.
See More
