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 defense and mining sectors. The AUD $7,700,000 acquisition represents a strategic move to establish sovereign manufacturing capability in Australia and vertically integrate production of the company's Nexus communications platforms.
The transaction provides immediate financial benefits, with the target company generating approximately AUD $7.5 million in revenue and AUD $1.9 million in EBITDA for FY2025. Projections indicate revenue and EBITDA could double within the next 2–3 years, creating an immediate earnings base for CiTech while supporting production scaling. The acquisition's importance lies in strengthening Australia's sovereign defense manufacturing capability at a time when international supply chain security has become increasingly critical.
Strategic benefits include faster prototyping, production, and deployment of Nexus autonomous communications platforms, access to skilled workforce and advanced fabrication infrastructure, and enhanced capability to support defense, mining and critical infrastructure customers. This vertical integration allows CiTech to accelerate production to meet growing international demand from these sectors. The company's Nexus platform provides critical mobile telecommunications for mining, defense, border security, surveillance and emergency services sectors.
Transaction structure involves AUD $5,775,000 payable on completion, with two additional payments of AUD $962,500 on the first and second anniversaries. CiTech will also assume net working capital adjustments estimated at approximately AUD $2.08 million. Financing combines approximately 60% debt funding from an Australian bank with 40% equity funding through a capital raise currently underway.
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 autonomous, high-capacity mobile communications and security platforms address limitations of current rapidly deployable communication solutions through patented technologies. More information about the company's technology and products is available at https://www.citech.com.au.
This development matters because it enhances Australia's sovereign manufacturing capacity for critical defense and infrastructure technologies at a time when geopolitical tensions highlight the importance of domestic production capabilities. The acquisition positions CiTech to better serve international defense and mining markets while contributing to Australia's strategic industrial base, with potential implications for national security, economic resilience, and technological innovation in the Asia-Pacific region.
