Critical Infrastructure Technologies Ltd. (CSE: CTTT) (OTC: CITLF) (FRA: X9V) has executed a binding term sheet to acquire 100% of the issued shares in a Western Australian precision manufacturing company. The AUD $7.7 million acquisition represents a strategic move to expand advanced production capabilities and secure local sovereign manufacturing capacity for the company's Nexus 20 and future product lines.
The transaction adds a profitable and well-established business to CiTech's portfolio, with the acquired company generating revenue exceeding AUD $7.4 million and EBITDA of more than AUD $1.9 million. This robust earnings base will support accelerated growth in sovereign defence manufacturing, enabling CiTech to scale production, strengthen supply chain control, and advance delivery of its autonomous communication systems. The acquisition provides immediate eligibility for Defence tenders and projects requiring DISP (Defence Industry Security Program) membership, a critical credential for working with the Australian Department of Defence.
The Western Australian company, founded in 1997, 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 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. The company maintains certifications to ISO 9001 (Quality), ISO 14001 (Environment), and ISO 45001 (Safety) standards, ensuring defence-grade component production with precision and efficiency.
Brenton Scott, CEO of CiTech, emphasized the strategic importance of the acquisition, stating that it provides the company with a consistent revenue stream and instant profitability, making the CiTech Group cashflow positive from completion. The acquisition ensures the group can accelerate production while strengthening Australia's sovereign industrial base. The DISP accreditation achieved by the acquired company represents a significant milestone, demonstrating commitment to the security, integrity, and resilience required for mission-critical defence systems.
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. 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. The strategic move complements CiTech's growing international partnerships, including collaborations with Babcock International and Terma, while expanding its reach across allied markets. For more information about the company's autonomous technology platforms, visit https://www.citech.com.au.
