Critical Infrastructure Technologies Ltd. (CSE: CTTT) has entered into a binding term sheet to acquire 100% of a Western Australian precision manufacturing company for AUD $7.7 million. This strategic acquisition represents a significant step in strengthening Australia's sovereign manufacturing capabilities for defence and communications systems while providing immediate financial benefits to the expanding technology company.
The acquisition brings CiTech a profitable business with revenue exceeding AUD$7.4 million and EBITDA of more than AUD$1.9 million based on 2025 figures. This establishes a robust earnings base that will support accelerated growth in sovereign defence manufacturing. The transaction enables CiTech to scale production, strengthen supply chain control, and advance delivery of its Nexus 20 and future autonomous communication systems.
Founded in 1997, the Western Australian company brings more than 25 years of experience delivering precision sheet-metal fabrication, CNC machining, and engineering solutions for defence, mining, infrastructure, and government sectors. The business operates a fully equipped manufacturing facility featuring state-of-the-art laser cutting systems, CNC folding and bending machines, robotic welding technology, and advanced CAD/CAM integration. The company maintains ISO 9001 (Quality), ISO 14001 (Environment), and ISO 45001 (Safety) certifications, ensuring defence-grade component production with precision and repeatability.
Brenton Scott, CEO of CiTech, emphasized the strategic importance of this acquisition. "The business has established itself as a leading precision manufacturer supporting defence and heavy industry in Australia. This acquisition provides CiTech with a consistent revenue stream together with instant profitability, making the CiTech Group cashflow positive from completion. It ensures the group can accelerate production of our Nexus 20 and future product lines while strengthening Australia's sovereign industrial base."
A critical aspect of this acquisition is the target company's DISP (Defence Industry Security Program) accreditation, administered by the Australian Department of Defence. This accreditation confirms the company meets rigorous security, governance, and information protection standards required to work with Defence and its supply chain partners. DISP membership enables secure handling of classified information, personnel, and projects, facilitating closer collaboration with Defence and enhancing Australia's sovereign capability in advanced manufacturing.
Scott highlighted the significance of the security accreditation, stating, "Achieving DISP accreditation represents a significant milestone. It demonstrates our shared commitment to the security, integrity, and resilience required to deliver mission-critical systems to Defence and allied nations." The acquisition provides immediate eligibility for Defence tenders and projects requiring DISP membership, positioning CiTech as a stronger contender in the defence manufacturing sector.
The transaction remains subject to due diligence and finalization of a Share Purchase Agreement, with completion anticipated within 90 days of the term sheet's execution. The founders will remain with the business through a structured transition period to ensure operational continuity and maintain quality standards. The company name being acquired will not be disclosed until after due diligence concludes.
This 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. It complements CiTech's growing network of international partnerships, including collaborations with Babcock International, Terma, and the establishment of an EU presence in Latvia. The vertical integration achieved through this acquisition improves speed to deployment, cost control, and scalability for defence-grade systems while expanding CiTech's reach across allied markets. For more information about the company, visit https://www.citech.com.au.
