Cycurion Acquires Digital Ally Video Solutions for $5M Revenue Boost
Event summary
- Cycurion closed acquisition of Digital Ally video solutions from Kustom Entertainment on August 4, 2026.
- Deal adds $5M+ annual revenue and $1.2M EBITDA, bringing Cycurion’s run rate to ~$30M.
- Acquisition includes 800 public safety clients and 50 patents in video surveillance/evidence management.
- Cycurion gains cross-selling opportunities with AI cybersecurity solutions for law enforcement.
The big picture
Cycurion’s acquisition of Digital Ally strengthens its position in the growing AI-powered public safety market, where video surveillance and cybersecurity convergence is critical. The deal reflects a broader trend of consolidation among cybersecurity firms seeking scale to compete with larger players like Palo Alto Networks and Fortinet.
What we're watching
- Integration Execution
- How Cycurion merges Digital Ally’s video solutions with its AI cybersecurity platform will determine cross-selling success.
- Recurring Revenue Growth
- Whether the acquisition’s recurring revenue model can accelerate Cycurion’s path to profitability.
- Market Positioning
- The pace at which Cycurion expands its public safety tech footprint against competitors like Axon.
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