Critical Infrastructure Technologies Ltd. (CSE: CTTT) (OTC: CITLF) (FRA: X9V) has announced it has received finance approval for the debt component of the acquisition price to acquire 100% of the issued shares of a Western Australian precision engineering and manufacturing company with strong connections to the defence and mining sector. This acquisition marks a major step in CiTech's strategy to establish sovereign manufacturing capability in Australia and vertically integrate the production of its Nexus platform and future defence technologies.
The purchase price totals AUD $5,775,000 on completion, with deferred payments of AUD $962,500 on the first and second anniversaries of completion. The target company reported revenue of AUD $7.5 million for FY2025 and is projected to generate AUD $8.6 million in FY2026. EBITDA for FY2025 was AUD $1.9 million, with a projection of AUD $2.2 million for FY2026. Revenue and EBITDA are expected to double within the next two to three years. The acquisition adds a profitable and well-established engineering and fabrication business to CiTech's operations, providing an immediate earnings base while strengthening the Company's ability to scale production of its Nexus communications platforms. Completion is extended to on or before May 31, 2026.
Strategic benefits include immediate sovereign manufacturing capability in Western Australia, vertical integration of fabrication and engineering operations, faster prototyping, production, and deployment of Nexus platforms, access to a highly skilled workforce and advanced fabrication infrastructure, and enhanced capability to support defence, mining and critical infrastructure customers. 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.
Brenton Scott, Director & Chief Executive Officer of Critical Infrastructure Technologies Ltd., commented, "Being able to settle 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." He added, "Importantly, it strengthens sovereign Australian defence manufacturing capability and positions CiTech to participate in major allied supply chains."
Listed on the CSE with operations in Perth, Western Australia, CiTech is creating autonomous, high capacity, rapidly deployable technology that delivers essential services. The Company is targeting the mining, defence, border security/surveillance and emergency services sectors with its first product release, the Nexus 16. More information is available at www.citech.com.au.
