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D.A. Davidson &amp; Co. announced today that it served as e...

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D.A. Davidson &amp; Co. announced today that it served as exclusive financial advisor to Secturion Systems, Inc. ("Secturion" or the "Company") on its sale to Carlyle (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/CG">CG</a>).

</p><p xmlns="http://www.w3.org/1999/xhtml" id="news-body-cta">This press release features multimedia. View the full release here: <a xmlns="http://www.w3.org/1999/xhtml" href="https://www.businesswire.com/news/home/20260726212167/en/" rel="nofollow">https://www.businesswire.com/news/home/20260726212167/en/</a></p><div xmlns="http://www.w3.org/1999/xhtml" id="bwbodyimg" style="width: 456px; float:left; padding-left:0px; padding-right:20px; padding-top:0px; padding-bottom:0px;"><img xmlns="http://www.w3.org/1999/xhtml" src="https://mms.businesswire.com/media/20260726212167/en/2860115/4/Secturion_0723PR.jpg" alt="D.A. Davidson &amp; Co. announced today that it served as exclusive financial advisor to Secturion Systems, Inc. on its sale to Carlyle."></img><p xmlns="http://www.w3.org/1999/xhtml" style="font-size:85%;">D.A. Davidson &amp; Co. announced today that it served as exclusive financial advisor to Secturion Systems, Inc. on its sale to Carlyle.</p></div><p xmlns="http://www.w3.org/1999/xhtml">
Founded in 2012 and headquartered in Centerville, Utah, Secturion is a leading provider of high-speed, National Security Agency ("NSA") certified hardware encryption solutions that protect sensitive and classified information. The Company has established a reputation for reliability and technical excellence, engineering high-assurance hardware solutions that safeguard sensitive mission data across airborne, maritime, and ground environments. With deep defense and intelligence experience, the Company maintains entrenched relationships across key service branches, the intelligence community, and leading defense primes.

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Building on more than a decade of engineering innovation, Secturion’s leadership team views the partnership with Carlyle as a catalyst for accelerating the Company’s product roadmap and advancing Secturion&#39;s long-term growth trajectory in service of its customers and end users.

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&#34;Innovation has always been at the core of what we do,&#34; said Derek Owens, Chief Technology Officer of Secturion. &#34;With Carlyle’s support, we will be able to accelerate the development of next-generation encryption technologies that help our customers stay ahead of their evolving security challenges.&#34;

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The acquisition represents a strong strategic fit for Carlyle and marks the first investment by the firm&#39;s dedicated middle-market Aerospace, Defense &amp; Government and Industrials platform. With nearly 40 years of investing across the aerospace, defense, and government sectors, the acquisition aligns with Carlyle’s continued focus on partnering with innovative businesses and talented leadership teams to advance national security, defense modernization, and industrial resilience.

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&#34;Navigating today&#39;s complex market landscape requires a partner who brings both deep strategic foresight and true agility,&#34; said Josh Falslev, Chief Operating Officer of Secturion. &#34;Working with D.A. Davidson went far beyond seamless execution—they actively elevated the process and exceeded our expectations. Their team brought top-tier strategic businesses to the table, streamlined our interactions with the Board, and kept momentum high to maximize value and returns for every party involved. They proved to be an exceptional advisor from start to finish.&#34;

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This transaction marks another successful closing by D.A. Davidson&#39;s Aerospace, Defense &amp; Government Services ("AD&amp;GS") practice and underscores the strong, ongoing momentum within the D.A. Davidson Diversified Industrials Investment Banking Group.

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&#34;The convergence of quantum computing advances and increasingly sophisticated AI-driven cyber threats is creating unprecedented risks to national security systems, domestic and deployed defense programs, and critical infrastructure, making hardware-based, high-assurance encryption more essential than ever. As the first investment in Carlyle’s dedicated middle-market Aerospace, Defense &amp; Government and Industrials platform, Secturion is uniquely positioned to rapidly scale alongside a growing national security imperative for trusted, mission-critical encryption solutions as emerging technologies continue to reshape the global threat landscape,&#34; said Toby Albright, Managing Director, Aerospace, Defense, and Government Services ("AD&amp;GS"), D.A. Davidson.

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The engagement also reflects the strength of D.A. Davidson&#39;s cross-practice collaboration, bringing together senior banker coverage from across the firm, with deep industry expertise and local geographic coverage to support Secturion through every phase of the process.

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"Secturion has established itself as a leading platform through its strong management team, differentiated capabilities, and commitment to its customers,&#34; said Mike Smith, Managing Director, Outdoor &amp; Tactical, D.A. Davidson. &#34;We appreciated the opportunity to work alongside the Board and management team on this significant transaction and look forward to supporting Secturion&#39;s continued success with Carlyle as its partner.&#34;

</p><p xmlns="http://www.w3.org/1999/xhtml">
<a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fdadavidson.com%2FWHAT-WE-DO%2FInvestment-Banking&amp;esheet=54577500&amp;newsitemid=20260726212167&amp;lan=en-US&amp;anchor=D.A.+Davidson%26%238217%3Bs+Investment+Banking+Division&amp;index=1&amp;md5=281f042aa3415cc195a199c2881a02e3" shape="rect">D.A. Davidson’s Investment Banking Division</a> is a leading full-service investment bank that offers comprehensive financial advisory and capital markets expertise. The group has extensive transaction experience serving middle-market clients worldwide across four industry verticals: consumer, diversified industrials, financial institutions, and technology.

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<b xmlns="http://www.w3.org/1999/xhtml">About D.A. Davidson Companies</b>

</p><p xmlns="http://www.w3.org/1999/xhtml">
D.A. Davidson Companies is an employee-owned financial services firm offering a range of financial services and advice to individuals, corporations, institutions, and municipalities nationwide. Founded in 1935 with corporate headquarters in Great Falls, Montana, and regional headquarters in Denver, Greater Los Angeles, New York, Omaha and Seattle, the company has approximately 1,625 employees and offices in 32 states.

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Subsidiaries include D.A. Davidson &amp; Co., a full-service investment firm providing wealth management, investment banking, equity and fixed income capital markets services, and advice; Davidson Investment Advisors, a professional asset management firm; and D.A. Davidson Trust Company, a trust and wealth management company.

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For more information, visit <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.dadavidson.com%2F&amp;esheet=54577500&amp;newsitemid=20260726212167&amp;lan=en-US&amp;anchor=dadavidson.com&amp;index=2&amp;md5=58a49582c833c209d7dc66fe045f2120" shape="rect">dadavidson.com</a>.

</p><p xmlns="http://www.w3.org/1999/xhtml"><img xmlns="http://www.w3.org/1999/xhtml" alt="" src="https://cts.businesswire.com/ct/CT?id=bwnews&amp;sty=20260726212167r1&amp;sid=benz2&amp;distro=nx&amp;lang=en" style="width:0;height:0"></img><span xmlns="http://www.w3.org/1999/xhtml" class="bwct31415"></span></p><p xmlns="http://www.w3.org/1999/xhtml" id="mmgallerylink"><span xmlns="http://www.w3.org/1999/xhtml" id="mmgallerylink-phrase">View source version on businesswire.com: </span><span xmlns="http://www.w3.org/1999/xhtml" id="mmgallerylink-link"><a xmlns="http://www.w3.org/1999/xhtml" href="https://www.businesswire.com/news/home/20260726212167/en/" rel="nofollow">https://www.businesswire.com/news/home/20260726212167/en/</a></span></p><p xmlns="http://www.w3.org/1999/xhtml">
<strong xmlns="http://www.w3.org/1999/xhtml">Deal Team Contacts</strong>

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George "Toby" Albright III, Managing Director, AD&amp;GS &#x7C; Washington, D.C. &#x7C; <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="mailto:talbright@dadco.com" shape="rect">talbright@dadco.com</a>

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Mike Smith, Managing Director, Outdoor &amp; Tactical &#x7C; Salt Lake City, Utah &#x7C; <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="mailto:MSmith@dadco.com" shape="rect">MSmith@dadco.com</a>

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Zach Bohan, Vice President &#x7C; Boston &#x7C; <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="mailto:zbohan@dadco.com" shape="rect">zbohan@dadco.com</a>

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<strong xmlns="http://www.w3.org/1999/xhtml">Media Contact</strong>

</p><p xmlns="http://www.w3.org/1999/xhtml">
Emily Roy
<br xmlns="http://www.w3.org/1999/xhtml"></br>Prosek for D.A. Davidson
<br xmlns="http://www.w3.org/1999/xhtml"></br>(646) 818-9232
<br xmlns="http://www.w3.org/1999/xhtml"></br><a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="mailto:eroy@prosek.com" shape="rect">eroy@prosek.com</a>

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D.A. Davidson Acts as Exclusive Financial Advisor to Secturion Systems on Its Sale to Carlyle

Carlyle acquires Secturion; expands mid-market defense encryption capabilities

<section class="insight" data-version="1">
  <section data-block="information">
    <h3>Information</h3>
    <p>&lt;p xmlns=&quot;http://www.w3.org/1999/xhtml&quot;&gt;
D.A. Davidson &amp;amp; Co. announced today that it served as e...</p>
  </section>

  <section data-block="ai-summary-paragraph">
    <h3>AI Summary</h3>
    <p>Carlyle Group (CG) has acquired Secturion Systems, a Utah-based NSA-certified encryption hardware provider. The deal expands Carlyle&#039;s dedicated middle-market Aerospace, Defense &amp; Government and Industrials platform and should accelerate Secturion&#039;s product roadmap. For CG shareholders, this signals stronger defense/security exposure within Carlyle&#039;s portfolio and potential near-term strategic benefits.</p>
  </section>

  <section data-block="ai-summary-bullets">
    <h3>Key Points</h3>
    <ul><li>D.A. Davidson advised Secturion on its sale to Carlyle (CG).</li><li>Secturion provides NSA-certified high-speed encryption hardware for defense/ intel.</li><li>Carlyle&#039;s first investment in its dedicated middle-market AD&amp;G/Industrials platform.</li><li>Deal likely accelerates Secturion&#039;s product roadmap and growth trajectory.</li><li>The announcement underscores momentum in D.A. Davidson&#039;s aerospace/defense advisory practice.</li></ul>
  </section>

  <section data-block="companies-mentioned">
    <h3>Companies Mentioned</h3>
    <ul><li><strong>Secturion Systems, Inc. (N/A)</strong>: NSA-certified hardware encryption provider acquired by Carlyle; potential growth from defense contracts.</li><li><strong>Carlyle Group (CG)</strong>: Buyer; expands mid-market AD&amp;G/Industrials platform; potential upside to CG&#039;s growth exposure.</li><li><strong>D.A. Davidson &amp; Co. (N/A)</strong>: Exclusive advisor to Secturion; highlights cross-practice deal execution momentum.</li></ul>
  </section>

  <section data-block="category">
    <h3>M&amp;A</h3>
    <p>Category: M&amp;A within Corporate Developments. Fits as a strategic sale by Secturion to Carlyle, with cross-practice advisory momentum for D.A. Davidson and a expansion of Carlyle&#039;s defense/security platform.</p>
  </section>

  <section data-block="market-moving">
    <h3>Market-Moving</h3>
    <ul><li>Carlyle&#039;s AD&amp;G platform expansion may lift CG&#039;s strategic value and sentiment.</li><li>Growing demand for NSA-certified encryption amid AI/quantum threats supports defense tech exposure.</li><li>Deal visibility could improve CG&#039;s growth narrative and investor interest.</li><li>D.A. Davidson&#039;s role as advisor adds credibility and could attract more AD&amp;G deal activity.</li></ul>
  </section>

  <section data-block="key-facts">
    <h3>Key Facts</h3>
    <ul><li>Secturion founded in 2012; headquartered in Centerville, Utah.</li><li>NSA-certified high-speed hardware encryption solutions for defense/ intel customers.</li><li>Exclusive financial advisor to Secturion: D.A. Davidson &amp; Co.</li><li>Carlyle&#039;s first investment in its dedicated middle-market Aerospace, Defense &amp; Government and Industrials platform.</li><li>Deal announced July 26, 2026.</li></ul>
  </section>

  <section data-block="trading-thesis">
    <h3>Trading Thesis</h3>
    <p>CG could rally in 3–9 months as Carlyle expands its defense encryption exposure via Secturion.</p>
  </section>
</section>


<article>
  <section>
    <h2>Executive Summary</h2>
    <p>
      D.A. Davidson &amp; Co. announced today that it served as exclusive financial advisor to Secturion Systems, Inc. (<em>Secturion</em> or the <em>Company</em>) on its sale to Carlyle (NASDAQ: <strong>CG</strong>). This transaction marks Carlyle’s first investment within its dedicated middle-market Aerospace, Defense &amp; Government and Industrials platform and highlights a strategic fit that supports Secturion’s growth trajectory.
    </p>
  </section>

  <section>
    <h2>Deal Details</h2>
    <p>
      The acquisition represents a strong strategic fit for Carlyle and marks the first investment by the firm’s dedicated middle-market Aerospace, Defense &amp; Government and Industrials platform. With nearly 40 years of investing across the aerospace, defense, and government sectors, the acquisition aligns with Carlyle’s continued focus on partnering with innovative businesses and talented leadership teams to advance national security, defense modernization, and industrial resilience.
    </p>
    <ul>
      <li><strong>Buyer:</strong> Carlyle (NASDAQ: CG)</li>
      <li><strong>Advisor:</strong> D.A. Davidson &amp; Co. served as exclusive financial advisor to Secturion</li>
      <li><strong>Platform focus:</strong> Carlyle’s middle-market Aerospace, Defense &amp; Government and Industrials platform</li>
      <li><strong>Strategic rationale:</strong> Accelerate Secturion’s product roadmap and long-term growth</li>
    </ul>
  </section>

  <section>
    <h2>About Secturion Systems</h2>
    <p>
      Founded in 2012 and headquartered in Centerville, Utah, Secturion is a leading provider of high-speed, National Security Agency (<em>NSA</em>) certified hardware encryption solutions that protect sensitive and classified information. The Company has established a reputation for reliability and technical excellence, engineering high-assurance hardware solutions that safeguard sensitive mission data across airborne, maritime, and ground environments. With deep defense and intelligence experience, the Company maintains entrenched relationships across key service branches, the intelligence community, and leading defense primes.
    </p>
  </section>

  <section>
    <h2>Strategic Rationale and Growth Outlook</h2>
    <p>
      Building on more than a decade of engineering innovation, Secturion’s leadership team views the partnership with Carlyle as a catalyst for accelerating the Company’s product roadmap and advancing Secturion's long-term growth trajectory in service of its customers and end users.
    </p>
    <p>
      &#34;Innovation has always been at the core of what we do,&#34; said Derek Owens, Chief Technology Officer of Secturion. &#34;With Carlyle’s support, we will be able to accelerate the development of next-generation encryption technologies that help our customers stay ahead of their evolving security challenges.&#34;
    </p>
  </section>

  <section>
    <h2>Quoted Perspectives on the Transaction</h2>
    <p>
      The acquisition represents a strong strategic fit for Carlyle and marks the first investment by the firm&amp;#39;s dedicated middle-market Aerospace, Defense &amp; Government and Industrials platform. With nearly 40 years of investing across the aerospace, defense, and government sectors, the acquisition aligns with Carlyle’s continued focus on partnering with innovative businesses and talented leadership teams to advance national security, defense modernization, and industrial resilience.
    </p>
    <p>
      &#34;Navigating today&#39;s complex market landscape requires a partner who brings both deep strategic foresight and true agility,&#34; said Josh Falslev, Chief Operating Officer of Secturion. &#34;Working with D.A. Davidson went far beyond seamless execution—they actively elevated the process and exceeded our expectations. Their team brought top-tier strategic businesses to the table, streamlined our interactions with the Board, and kept momentum high to maximize value and returns for every party involved. They proved to be an exceptional advisor from start to finish.&#34;
    </p>
    <p>
      This transaction marks another successful closing by D.A. Davidson&#39;s Aerospace, Defense &amp; Government Services (<em>AD&amp;GS</em>) practice and underscores the strong, ongoing momentum within the D.A. Davidson Diversified Industrials Investment Banking Group.
    </p>
  </section>

  <section>
    <h2>Industry and Security Context</h2>
    <p>
      &#34;The convergence of quantum computing advances and increasingly sophisticated AI-driven cyber threats is creating unprecedented risks to national security systems, domestic and deployed defense programs, and critical infrastructure, making hardware-based, high-assurance encryption more essential than ever. As the first investment in Carlyle’s dedicated middle-market Aerospace, Defense &amp; Government and Industrials platform, Secturion is uniquely positioned to rapidly scale alongside a growing national security imperative for trusted, mission-critical encryption solutions as emerging technologies continue to reshape the global threat landscape,&#34; said Toby Albright, Managing Director, Aerospace, Defense, and Government Services (<em>AD&amp;GS</em>), D.A. Davidson.
    </p>
    <p>
      The engagement also reflects the strength of D.A. Davidson&#39;s cross-practice collaboration, bringing together senior banker coverage from across the firm, with deep industry expertise and local geographic coverage to support Secturion through every phase of the process.
    </p>
    <p>
      &#34;Secturion has established itself as a leading platform through its strong management team, differentiated capabilities, and commitment to its customers,&#34; said Mike Smith, Managing Director, Outdoor &amp; Tactical, D.A. Davidson. &#34;We appreciated the opportunity to work alongside the Board and management team on this significant transaction and look forward to supporting Secturion&#39;s continued success with Carlyle as its partner.&#34;
    </p>
  </section>

  <section>
    <h2>About D.A. Davidson</h2>
    <p>
      <em>D.A. Davidson’s Investment Banking Division</em> is a leading full-service investment bank that offers comprehensive financial advisory and capital markets expertise. The group has extensive transaction experience serving middle-market clients worldwide across four industry verticals: consumer, diversified industrials, financial institutions, and technology.
    </p>
    <p>
      <strong>About D.A. Davidson Companies</strong> is an employee-owned financial services firm offering a range of financial services and advice to individuals, corporations, institutions, and municipalities nationwide. Founded in 1935 with corporate headquarters in Great Falls, Montana, and regional headquarters in Denver, Greater Los Angeles, New York, Omaha and Seattle, the company has approximately 1,625 employees and offices in 32 states.
    </p>
    <p>
      Subsidiaries include D.A. Davidson &amp; Co., a full-service investment firm providing wealth management, investment banking, equity and fixed income capital markets services, and advice; Davidson Investment Advisors, a professional asset management firm; and D.A. Davidson Trust Company, a trust and wealth management company.
    </p>
    <p>
      For more information, visit <a href="https://www.dadavidson.com/" rel="nofollow">dadavidson.com</a>.
    </p>
  </section>

  <section>
    <h2>Media Release and Source</h2>
    <p>
      This article is based on information from Business Wire. For the full release, view here: <a href="https://www.businesswire.com/news/home/20260726212167/en/" rel="nofollow">https://www.businesswire.com/news/home/20260726212167/en/</a>.
    </p>
  </section>
</article>

Carlyle Group (CG) has acquired Secturion Systems, a Utah-based NSA-certified encryption hardware provider. The deal expands Carlyle's dedicated middle-market Aerospace, Defense & Government and Industrials platform and should accelerate Secturion's product roadmap. For CG shareholders, this signals stronger defense/security exposure within Carlyle's portfolio and potential near-term strategic benefits.

News insight

D.A. Davidson Acts as Exclusive Financial Advisor to Secturion Systems on Its Sale to Carlyle

AI summary

Sentiment rationale

Key facts

M&A