Critical Infrastructure Technologies Ltd. (CSE: CTTT) has executed a Share Sale Agreement to acquire 100% of a Western Australian precision engineering and manufacturing company with strong connections to defence and mining sectors. The AUD $7.7 million acquisition represents a major step in CiTech's strategy to establish sovereign manufacturing capability in Australia and vertically integrate production of its Nexus platform and future defence technologies. The transaction brings immediate financial benefits, with the target company generating approximately AUD $7.5 million in revenue and AUD $1.9 million in EBITDA for FY2025. Management projects revenue and EBITDA could double within the next 2–3 years, providing CiTech with an immediate earnings base while strengthening the company's ability to scale production of its Nexus communications platforms.
Strategic benefits include immediate sovereign manufacturing capability in Western Australia, vertical integration of fabrication and engineering operations, faster prototyping and production of Nexus platforms, and access to a highly skilled workforce with advanced fabrication infrastructure. This strengthened manufacturing capability will allow CiTech to accelerate production of its Nexus autonomous communications platforms, supporting increasing demand from international defence, mining and infrastructure markets. The acquisition will be financed through approximately 60% debt funding from an Australian bank and 40% equity funding through a capital raise currently underway. Under the terms of the Share Sale Agreement, consideration will be paid in three installments: AUD $5,775,000 on completion, with AUD $962,500 payable on each of the first and second anniversaries of completion. CiTech will also assume net working capital adjustments estimated at approximately AUD $2.08 million.
Brenton Scott, Chief Executive Officer of Critical Infrastructure Technologies, stated the acquisition represents a significant step in CiTech's growth strategy. "This acquisition provides immediate revenue and earnings while delivering the manufacturing capability required to scale production of our Nexus platforms and support increasing international demand," Scott said. "Importantly, it strengthens sovereign Australian defence manufacturing capability and positions CiTech to participate in major allied supply chains." The acquisition remains subject to securing required funding and standard closing conditions, with completion expected on March 31, 2026. The company's Nexus platform aims to provide critical mobile telecommunications for mining, defence, border security and emergency services sectors. To learn more about the company's technology, visit https://www.citech.com.au. The original announcement can be viewed on https://www.newmediawire.com.
