Carlyle Group Inc. and CVC Capital Partners Plc are exploring a joint takeover of security systems provider Bauwatch, people familiar with the matter said. The potential acquisition, reported by Bloomberg Markets, marks a strategic move by the two firms to expand their presence in the security technology sector. While details of the bid remain undisclosed, the collaboration underscores growing interest in consolidating market share in cybersecurity and surveillance solutions. No formal offer has been made, and the process is still in early stages.

Bauwatch, a company specializing in security infrastructure, has not commented on the reports. Carlyle and CVC, both major private equity firms, have a history of acquiring niche technology businesses. The partnership between the two firms could signal a shift toward larger-scale investments in defense and security-related industries.

The bid’s outcome depends on negotiations and regulatory approvals. Analysts note that such acquisitions often require significant due diligence, particularly in sectors with strict compliance requirements. The companies have not disclosed financial terms or timelines for the potential deal.