Cycurion, Inc. Closes Acquisition of Digital Ally Video Solutions Business, Expanding Its Resources While Adding More Than $5 Million in Revenue and Over $1.2 Million in EBITDA — Bringing Annual Revenue Run Rate to Approximately $30 Million

Cycurion (CYCU) has completed its acquisition of Kustom Entertainment's legacy video solutions business, a strategic move that materializes the company's inorganic growth strategy. The deal introduces $5+ million in incremental annual revenue and $1.2+ million in EBITDA, elevating CYCU's projected revenue run-rate to approximately $30 million. This represents a meaningful expansion of the company's resource base and operational scale.

The acquisition consolidates Kustom's video solutions capabilities into Cycurion's broader cybersecurity and managed services portfolio. This integration positions the combined entity to cross-sell security services alongside video infrastructure assets, potentially improving customer lifetime value and reducing churn. The transaction demonstrates CYCU's ability to execute M&A and integrate acquired business units within the competitive technology services landscape.

From a financial perspective, the deal is accretive to EBITDA on a near-term basis, with $1.2 million of EBITDA contribution providing immediate margin support. The 30x revenue run-rate milestone suggests CYCU is transitioning from micro-cap to small-cap scale, though profitability trajectory and cash flow generation remain critical valuation metrics for institutional investors to monitor.

Sector implication: The Technology sector, particularly business software and IT services subsegments, continues to consolidate through strategic M&A. This deal reflects ongoing appetite for acquiring niche cybersecurity and managed services capabilities at reasonable multiples, supporting the sector's narrative of operational efficiency and cross-selling potential amid competitive pressures.