Carlyle Acquires Defense Encryption Firm Secturion Systems

Carlyle Group has initiated its dedicated middle-market aerospace, defense, and government investment platform with the acquisition of Secturion Systems, a specialist in NSA-certified hardware encryption. This strategic move signals the private equity giant's intent to capture opportunities within the increasingly vital defense technology sector, a market experiencing robust investor interest.

The newly formed platform, aiming to raise up to $3 billion, targets mid-sized companies that supply critical solutions to defense contractors and government agencies. Secturion Systems, established in 2012 and based in Centerville, Utah, develops advanced encryption hardware designed to secure classified information across various military platforms, including airborne, maritime, and ground-based systems. Its technology is already a trusted component for major clients such as the US Navy and Boeing.

This acquisition aligns with a significant trend of private equity capital flowing into the aerospace and defense industries. Global private equity investments in this sector surpassed $50 billion in 2025, nearing the record highs seen in 2021. The heightened demand for secure data transmission and storage, driven by evolving geopolitical threats and the advancement of technologies like quantum computing and AI, makes companies like Secturion particularly attractive.

Ian Fujiyama, chairman of Carlyle's new defense-focused platform, emphasized Secturion's strong product suite and engineering prowess as key factors in the decision. He views the company as an ideal inaugural investment for the platform. The leadership team at Secturion will remain largely intact, with Sean Berg stepping in as CEO. Berg brings extensive experience from the technology sector, including a prior tenure as CEO of Everfox, and is expected to guide the company through its next phase of expansion. Josh Falslev continues as Chief Operating Officer, and Derek Owens remains Chief Technology Officer.

The strategic importance of high-assurance encryption cannot be overstated in today's defense environment. As adversaries develop more sophisticated cyberattack capabilities, the need for robust, hardware-based encryption solutions to protect sensitive military data and critical infrastructure becomes paramount. Secturion's NSA certification underscores the high standards its products meet for government and defense applications.

The Carlyle platform, under the leadership of Ian Fujiyama, with operational oversight from Aaron Hurwitz and Wes Bieligk, and supported by operating executive Retired Army General Bryan Fenton, is well-positioned to identify and invest in further opportunities. Carlyle's prior successful investments in the defense space, including the acquisitions of MANTECH for $4.2 billion in 2022 and Two Six Technologies, demonstrate a deep understanding of the sector's dynamics and potential.