Critical Infrastructure Technologies Ltd. is advancing toward acquiring 100% of a Western Australian precision manufacturing company to expand its advanced production capabilities and secure local sovereign manufacturing capacity for its autonomous communication systems. The AUD $7.7 million acquisition will integrate a profitable business with revenue exceeding AUD $7.4 million and EBITDA of more than AUD $1.9 million, providing a robust earnings base to support accelerated growth in defence manufacturing. This strategic move addresses increasing demand for sovereign manufacturing capabilities in Australia's defence and critical infrastructure sectors.
The targeted company operates a fully equipped in-house manufacturing facility featuring state-of-the-art laser cutting systems, CNC folding and bending machines, robotic welding technology, and advanced CAD/CAM integration. Certified to ISO 9001, ISO 14001, and ISO 45001 standards, the facility provides CiTech with direct access to a highly skilled workforce and modern fabrication systems, enabling faster prototyping, improved cost control, and scalable manufacturing for defence and communications technologies. This manufacturing infrastructure represents a significant enhancement to CiTech's production capabilities.
A critical aspect of the acquisition is the target company's Defence Industry Security Program accreditation, administered by the Australian Department of Defence. This credential ensures compliance with rigorous security, governance, and information protection standards required to work with Defence and its supply chain partners, enabling immediate CiTech participation in classified defence programs. The acquisition reinforces CiTech's commitment to building a sovereign Australian manufacturing ecosystem capable of supporting rapid-deployment systems for defence, emergency response, and secure communications. This security accreditation represents a substantial competitive advantage in the defence sector.
Due diligence is expected to be completed by December 19, 2025, with a targeted settlement date of January 31, 2026. The acquisition remains subject to completion of due diligence, finalisation of the Share Purchase Agreement, securing required funding, and standard closing conditions. To support these requirements, CiTech has engaged Moneta Securities to raise up to AUD $10 million, which will be used to settle the acquisition and provide working capital. This financial arrangement demonstrates the company's commitment to completing the transaction.
The vertically integrated production capacity established through this acquisition improves speed, cost efficiency, and scalability for CiTech's Nexus 20 and future product lines. This complements CiTech's growing network of international partnerships, including collaborations with Babcock International and Terma, and expands its reach across allied markets. The combination of modern equipment, skilled personnel, and robust quality management systems enables production of defence-grade components and assemblies with precision, repeatability, and efficiency, strengthening Australia's sovereign manufacturing capability in critical infrastructure sectors. This acquisition positions CiTech as a more integrated and capable provider of defence and communications technologies.
