Kustom Entertainment signs $5.5 million divestiture deal

• Kustom Entertainment agreed to divest its legacy video solutions division to Cycurion.
• The consideration totals up to $5.5 million plus 2,000,000 Cycurion warrants.
• Kustom said the deal supports its shift toward live entertainment and ticketing.

Kustom Entertainment (NASDAQ:KUST) agreed to divest its legacy video solutions division to Cycurion (NASDAQ:CYCU), with consideration totaling up to $5.5 million plus 2,000,000 Cycurion warrants.

The transaction advances Kustom Entertainment’s shift toward live entertainment and ticketing after the company moved away from its former video solutions focus.

The deal includes $1.25 million in upfront cash and a $4.25 million secured note over 36 months at 7% interest.

Kustom Entertainment said the deal value equates to about $5.33 per estimated current Kustom share and is expected to close in July 2026.

Kustom Entertainment said the divestiture follows its Gilley’s Park City partnership, which nearly doubles Country Stampede’s capacity to up to 35,000 people per show.

Kustom Entertainment said the Gilley’s Park City partnership also adds more than 20 show days in 2027 as the company builds its live events and ticketing business.