Carlyle Secturion acquisition adds defense hardware encryption platform

Carlyle has acquired Secturion Systems, a Centerville, Utah-based cybersecurity company founded in 2012, in a transaction whose financial terms were not disclosed, PE Hub reported. The Carlyle Secturion acquisition gives the private equity firm a business focused on hardware encryption for sensitive and classified information.

The deal is the first investment made by Carlyle’s middle-market aerospace, defense and government, and industrials platform, according to PE Hub. No revenue, earnings, valuation or ownership percentage figures were disclosed.

What did Carlyle buy in the Secturion deal?

Secturion Systems provides hardware encryption solutions used to protect sensitive and classified information, PE Hub reported. Hardware encryption generally refers to security functions embedded in physical devices or components, rather than relying only on software-based protection.

The company’s focus places it within the defense hardware encryption market, according to comments from Dayne Baird, a partner on Carlyle’s aerospace, defense and government team. Baird said Carlyle plans to support Secturion’s growth using the firm’s resources, relationships and experience with government technology platforms.

Who will run Secturion after Carlyle’s investment?

Sean Berg will join Secturion as chief executive officer, PE Hub reported. Berg previously served as CEO of Everfox, the business formerly known as Forcepoint Federal.

In a statement cited by PE Hub, Baird said Carlyle was pleased to partner with Berg and Secturion’s team. He described Secturion as a business built on engineering talent, innovation and customer commitment, and said Carlyle would invest to accelerate the company’s growth and mission impact.

The appointment links Secturion with an executive who has led a government-focused cybersecurity company. PE Hub did not report additional management changes or provide details on Berg’s start date.

Which advisers worked on the transaction?

D.A. Davidson & Co. served as exclusive financial adviser to Secturion in connection with the transaction, according to PE Hub. Wilson Sonsini Goodrich & Rosati acted as Secturion’s legal adviser.

Latham & Watkins advised Carlyle on legal matters, PE Hub reported. The parties did not disclose further financing details, closing conditions or strategic plans beyond Carlyle’s stated intention to support Secturion’s expansion in defense hardware encryption.

This story draws on original reporting from PE Hub.