Cycurion details $54.6 million state contract and Digital Ally acquisition

Cycurion, Inc. (NASDAQ: CYCU) disclosed that Chairman and Chief Executive Officer L. Kevin Kelly discussed the company's largest contract award to date and its acquisition of Digital Ally's Video Solutions business in an interview with SmallCapVoice.com, Inc. The company, based in McLean, Virginia, outlined these operational milestones alongside its expansion strategy within the public safety sector.

Kelly highlighted a previously announced $54.6 million, 10-year contract award secured through a leading global consulting firm. This agreement supports the modernization and secure operation of a major state Health and Human Services system. The company expects the contract to generate more than $5 million in annual revenue, with work scheduled to commence in November 2026.

The acquisition of Digital Ally's Video Solutions business adds an established public safety technology portfolio to Cycurion's operations. This transaction contributes approximately $5.5 million in annual revenue and more than $1.2 million in EBITDA. The acquired business includes an installed customer base of over 800 law enforcement agencies and a portfolio of intellectual property assets. Upon closing, Cycurion’s pro forma gross revenue run rate stands at approximately $30 million.

Kelly stated that the acquisition is an important step in expanding the company's public safety ecosystem by adding recurring revenue and cross-selling opportunities. The company aims to combine advanced public safety technologies with its cybersecurity expertise to serve law enforcement, emergency services, transportation, and critical infrastructure clients.

The interview also addressed Cycurion's expanding public safety footprint, including recent municipal and state-level engagements. Kelly noted that public safety serves as a strategic foundation for broader expansion into federal government and commercial cybersecurity markets. These engagements provide long-term relationships and recurring revenue opportunities while the company pursues larger federal opportunities and builds new commercial offerings.

Cycurion intends to broaden its offensive security offerings by developing tools that detect system weaknesses prior to any compromise. Kelly indicated that the company is investing in next-generation capabilities to help customers address vulnerabilities proactively across both government and commercial sectors.

Management reiterated its focus on profitable growth, operational execution, and increasing shareholder value. The company has worked to strengthen its financial foundation, reduce debt, improve margins, and secure long-term contract visibility. The press release includes forward-looking statements regarding anticipated financial benefits from the acquisition, patent validity, and the company's path to profitability, noting that actual results may differ due to risks outside the company's control.