Kustom Entertainment Sells Video Solutions Division to Cycurion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: seekingalpha
- Strategic Transition Completed: Kustom Entertainment's sale of its legacy video solutions division to Cycurion signifies the completion of its transition to a pure-play live entertainment and ticketing business, with a total transaction value of up to $5.5 million, including $1.25 million in cash and a $4.25 million secured promissory note at 7% interest.
- Future Upside Potential: Kustom will also receive 2 million warrants to purchase Cycurion common stock, providing potential upside tied to Cycurion's future performance, thereby enhancing Kustom's market position in the live entertainment sector.
- Continued Focus: This divestiture follows Kustom's earlier sale of its medical billing business, indicating a strategic commitment to concentrate on live event production and online ticketing operations to strengthen its core competencies.
- Positive Market Reaction: KUST stock surged 71% during Thursday's pre-market trading, reflecting strong market confidence in the company's strategic shift and significantly boosting investor sentiment regarding future growth prospects.
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About KUST
Kustom Entertainment, Inc. is focused on live event production and ticketing technology. The Company specializes in large-scale music festivals and end-to-end event management. Its flagship event, Country Stampede, is held annually at the Azura Amphitheater in Bonner Springs, Kansas. Its segments include Video Solutions and the Entertainment Segment. The Video Solutions segment includes both service and product through its subscription models offering cloud and warranty solutions, and hardware sales for video and health safety solutions. Its products include the EVO-HD, DVM-800 and DVM-800 Lite, which are in-car digital video systems for law enforcement and commercial markets. The Entertainment segment includes the Company’s ticketing and live-event operations and, through its TicketSmarter platform and related entertainment brands, acting as an intermediary between ticket buyers and sellers and purchasing ticket inventory from primary sources for resale through various channels.
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.
Kustom Entertainment Sells Video Solutions Division to Cycurion
- Strategic Transition Completed: Kustom Entertainment's sale of its legacy video solutions division to Cycurion signifies the completion of its transition to a pure-play live entertainment and ticketing business, with a total transaction value of up to $5.5 million, including $1.25 million in cash and a $4.25 million secured promissory note at 7% interest.
- Future Upside Potential: Kustom will also receive 2 million warrants to purchase Cycurion common stock, providing potential upside tied to Cycurion's future performance, thereby enhancing Kustom's market position in the live entertainment sector.
- Continued Focus: This divestiture follows Kustom's earlier sale of its medical billing business, indicating a strategic commitment to concentrate on live event production and online ticketing operations to strengthen its core competencies.
- Positive Market Reaction: KUST stock surged 71% during Thursday's pre-market trading, reflecting strong market confidence in the company's strategic shift and significantly boosting investor sentiment regarding future growth prospects.
See More
Kustom Entertainment Divests Video Solutions to Focus on Live Events
- Strategic Restructuring: Kustom Entertainment has entered into an agreement with Cycurion to divest its legacy video solutions division for a total consideration of $5.5 million, aiming to accelerate the company's transition towards rapidly growing live event production and online ticketing operations, thereby enhancing operational efficiency and market competitiveness.
- Enhanced Financial Flexibility: The transaction includes $1.25 million in cash and a $4.25 million secured promissory note, expected to close in July 2026, which enhances Kustom's near-term financial flexibility while providing potential long-term equity upside.
- Festival Expansion: Kustom's flagship event, the Country Stampede Music Festival, will move to Gilley’s Park City in 2027, nearly doubling its audience capacity to 35,000, further enhancing the live experience and attracting more attendees, thereby strengthening brand influence.
- Market Opportunities: This restructuring allows Kustom to focus on a $100 billion global market, with the CEO stating that this move will enable the company to better capitalize on growth opportunities in the entertainment sector and drive its expansion plans nationwide.
See More
Global Dance Music Festival Set for Kansas City
- Major Music Event: Kustom Entertainment is set to host the Global Frequencies EDM event on June 28, 2026, at Azura Amphitheater, expected to draw a large crowd and elevate Kansas City's status as a music destination.
- Star-Studded Lineup: The first wave of confirmed artists includes DJ Diesel (Shaquille O'Neal), Loud Luxury, TroyBoi, Alison Wonderland, and KSHMR, all renowned electronic music artists who will deliver electrifying performances, enhancing the event's appeal.
- Event Timing: Global Frequencies follows the three-day Country Stampede festival, showcasing Kustom Entertainment's strategic approach to diversifying music events and aiming to transform Kansas City into a summer music hub.
- Market Potential: Matt Tholen, VP of Kustom Entertainment, stated that this event will provide an unprecedented EDM experience for Kansas City, likely attracting more visitors and music enthusiasts, thereby boosting the local economy.
See More
Global Frequencies EDM Event Set for Kansas City
- Major Music Event: Kustom Entertainment is set to host the Global Frequencies EDM event on June 28, 2026, at Azura Amphitheater, expected to attract a large audience of electronic dance music fans and elevate Kansas City's music scene.
- Star-Studded Lineup: Featuring renowned artists like DJ Diesel (Shaquille O'Neal), Loud Luxury, TroyBoi, and Alison Wonderland, the event promises high-energy performances that will enhance its appeal and draw in crowds.
- Event Timing: The event follows the three-day Country Stampede festival, creating a continuous celebration of music that is likely to attract more visitors and boost the local economy.
- Marketing Strategy: Kustom Entertainment is actively promoting the event through social media and its website, with presale tickets available today, aiming to maximize audience engagement and enhance brand visibility.
See More
Kustom Entertainment Highlights Strategic Transformation and 2026 Outlook
- Strategic Restructuring: Kustom Entertainment successfully rebranded in January 2026 and changed its Nasdaq ticker, aiming to align its public identity with long-term operational strategies, thereby enhancing market recognition and attracting more investors.
- Business Focus: The company has completed the divestiture of Nobility Healthcare and revised its memorandum of understanding with Cycurion, reflecting its strategy to simplify operations and concentrate resources on high-growth opportunities, which is expected to improve overall business efficiency.
- Event Expansion: Kustom plans to add a fourth major concert day in 2026 and celebrate the 30th anniversary of Country Stampede, further solidifying its leadership position in the live entertainment market and driving revenue growth.
- Ticketing Platform Recognition: TicketSmarter's recent recognition by Forbes Advisor underscores the strength of its ticketing platform, supporting Kustom's strategy of pairing owned events with a differentiated ticketing business, which is expected to enhance customer loyalty.
See More
Cycurion to Acquire Kustom's Video Solutions Segment, Boosting Revenue
- Transaction Overview: Cycurion has entered a non-binding Memorandum of Understanding with Kustom Entertainment to acquire Kustom's legacy video solutions segment, which is expected to contribute approximately $5.1 million in annual revenue and an $8.0 million backlog, indicating the segment's stable historical performance.
- Accelerated Integration Plans: Both parties aim to close the transaction by early June 2026, reflecting strong alignment between their teams, with Cycurion planning to integrate the newly acquired video surveillance and digital evidence management capabilities into its ARx cybersecurity platform, thereby enhancing public safety and security solutions for customers.
- Financial Arrangement: The agreed purchase price of $5.5 million includes a $1.25 million cash payment at closing and a $4.25 million secured promissory note, along with additional warrants and performance-based earn-out provisions, demonstrating Cycurion's confidence in future growth.
- Market Outlook: This acquisition not only strengthens Cycurion's service capabilities in the cybersecurity sector but also propels its inorganic growth strategy, with expectations to enhance its market share among government, healthcare, and corporate clients.
See More
Kustom Entertainment Sells Video Solutions Division to Cycurion
- Strategic Transition Completed: Kustom Entertainment's sale of its legacy video solutions division to Cycurion signifies the completion of its transition to a pure-play live entertainment and ticketing business, with a total transaction value of up to $5.5 million, including $1.25 million in cash and a $4.25 million secured promissory note at 7% interest.
- Future Upside Potential: Kustom will also receive 2 million warrants to purchase Cycurion common stock, providing potential upside tied to Cycurion's future performance, thereby enhancing Kustom's market position in the live entertainment sector.
- Continued Focus: This divestiture follows Kustom's earlier sale of its medical billing business, indicating a strategic commitment to concentrate on live event production and online ticketing operations to strengthen its core competencies.
- Positive Market Reaction: KUST stock surged 71% during Thursday's pre-market trading, reflecting strong market confidence in the company's strategic shift and significantly boosting investor sentiment regarding future growth prospects.
See More
Kustom Entertainment Divests Video Solutions to Focus on Live Events
- Strategic Restructuring: Kustom Entertainment has entered into an agreement with Cycurion to divest its legacy video solutions division for a total consideration of $5.5 million, aiming to accelerate the company's transition towards rapidly growing live event production and online ticketing operations, thereby enhancing operational efficiency and market competitiveness.
- Enhanced Financial Flexibility: The transaction includes $1.25 million in cash and a $4.25 million secured promissory note, expected to close in July 2026, which enhances Kustom's near-term financial flexibility while providing potential long-term equity upside.
- Festival Expansion: Kustom's flagship event, the Country Stampede Music Festival, will move to Gilley’s Park City in 2027, nearly doubling its audience capacity to 35,000, further enhancing the live experience and attracting more attendees, thereby strengthening brand influence.
- Market Opportunities: This restructuring allows Kustom to focus on a $100 billion global market, with the CEO stating that this move will enable the company to better capitalize on growth opportunities in the entertainment sector and drive its expansion plans nationwide.
See More
Global Dance Music Festival Set for Kansas City
- Major Music Event: Kustom Entertainment is set to host the Global Frequencies EDM event on June 28, 2026, at Azura Amphitheater, expected to draw a large crowd and elevate Kansas City's status as a music destination.
- Star-Studded Lineup: The first wave of confirmed artists includes DJ Diesel (Shaquille O'Neal), Loud Luxury, TroyBoi, Alison Wonderland, and KSHMR, all renowned electronic music artists who will deliver electrifying performances, enhancing the event's appeal.
- Event Timing: Global Frequencies follows the three-day Country Stampede festival, showcasing Kustom Entertainment's strategic approach to diversifying music events and aiming to transform Kansas City into a summer music hub.
- Market Potential: Matt Tholen, VP of Kustom Entertainment, stated that this event will provide an unprecedented EDM experience for Kansas City, likely attracting more visitors and music enthusiasts, thereby boosting the local economy.
See More
Global Frequencies EDM Event Set for Kansas City
- Major Music Event: Kustom Entertainment is set to host the Global Frequencies EDM event on June 28, 2026, at Azura Amphitheater, expected to attract a large audience of electronic dance music fans and elevate Kansas City's music scene.
- Star-Studded Lineup: Featuring renowned artists like DJ Diesel (Shaquille O'Neal), Loud Luxury, TroyBoi, and Alison Wonderland, the event promises high-energy performances that will enhance its appeal and draw in crowds.
- Event Timing: The event follows the three-day Country Stampede festival, creating a continuous celebration of music that is likely to attract more visitors and boost the local economy.
- Marketing Strategy: Kustom Entertainment is actively promoting the event through social media and its website, with presale tickets available today, aiming to maximize audience engagement and enhance brand visibility.
See More
Kustom Entertainment Highlights Strategic Transformation and 2026 Outlook
- Strategic Restructuring: Kustom Entertainment successfully rebranded in January 2026 and changed its Nasdaq ticker, aiming to align its public identity with long-term operational strategies, thereby enhancing market recognition and attracting more investors.
- Business Focus: The company has completed the divestiture of Nobility Healthcare and revised its memorandum of understanding with Cycurion, reflecting its strategy to simplify operations and concentrate resources on high-growth opportunities, which is expected to improve overall business efficiency.
- Event Expansion: Kustom plans to add a fourth major concert day in 2026 and celebrate the 30th anniversary of Country Stampede, further solidifying its leadership position in the live entertainment market and driving revenue growth.
- Ticketing Platform Recognition: TicketSmarter's recent recognition by Forbes Advisor underscores the strength of its ticketing platform, supporting Kustom's strategy of pairing owned events with a differentiated ticketing business, which is expected to enhance customer loyalty.
See More
Cycurion to Acquire Kustom's Video Solutions Segment, Boosting Revenue
- Transaction Overview: Cycurion has entered a non-binding Memorandum of Understanding with Kustom Entertainment to acquire Kustom's legacy video solutions segment, which is expected to contribute approximately $5.1 million in annual revenue and an $8.0 million backlog, indicating the segment's stable historical performance.
- Accelerated Integration Plans: Both parties aim to close the transaction by early June 2026, reflecting strong alignment between their teams, with Cycurion planning to integrate the newly acquired video surveillance and digital evidence management capabilities into its ARx cybersecurity platform, thereby enhancing public safety and security solutions for customers.
- Financial Arrangement: The agreed purchase price of $5.5 million includes a $1.25 million cash payment at closing and a $4.25 million secured promissory note, along with additional warrants and performance-based earn-out provisions, demonstrating Cycurion's confidence in future growth.
- Market Outlook: This acquisition not only strengthens Cycurion's service capabilities in the cybersecurity sector but also propels its inorganic growth strategy, with expectations to enhance its market share among government, healthcare, and corporate clients.
See More
