Carlyle Group buys data protection tech maker

The Carlyle Group has acquired a hardware encryption maker in a move that represents the global investment firm’s first such via its new platform focused on medium-sized companies.

Secturion Systems opened for business in 2012 to develop cybersecurity and data protection technologies for defense and intelligence systems. Secturion’s products are certified by the National Security Agency to transmit classified data across government systems.

As part of the transaction announced Tuesday, former Everfox CEO Sean Berg will join Secturion as chief executive to lead this new iteration of the strategy. Josh Falslev and Derek Owens will continue in their respective roles of chief operating officer and chief technology officer.

Financial terms of the acquisition were not disclosed.

“As quantum computing advances and AI-enabled threats grow more sophisticated, the need for hardware-based, high-assurance encryption has never been greater, and Secturion is uniquely positioned to address those needs,” Berg said in a release.

Berg previously led the Everfox business for eight years, including when it operated as the federal arm of Forcepoint. Everfox was carved out of Forcepoint in 2023, then Berg worked in the CEO role for two-and-a-half years.

Carlyle first unveiled its middle-market play in May and said it would explore investment opportunities in both the U.S. and Europe.

D.A. Davidson & Co. acted as the exclusive financial adviser to Secturion. Wilson Sonsini Goodrich & Rosati acted as legal advisor to Secturion. Latham & Watkins LLP acted as legal adviser to Carlyle.