Critical Infrastructure Technologies Ltd. (CSE: CTTT) (OTC: CITLF) (FRA: X9V) has executed a Share Sale Agreement to acquire 100% of a Western Australian precision engineering and manufacturing company with established connections to defense and mining sectors. The AUD $7.7 million acquisition represents a strategic move to establish sovereign manufacturing capability in Australia while vertically integrating production of the company's Nexus communications platforms.
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 both revenue and EBITDA could double within the next 2–3 years, providing CiTech with an established earnings base while scaling production capabilities. The acquisition structure includes AUD $5,775,000 payable at completion, with two subsequent payments of AUD $962,500 on the first and second anniversaries, plus assumption of approximately AUD $2.08 million in net working capital adjustments.
Strategic benefits extend beyond immediate financial contributions. The acquisition provides CiTech with sovereign manufacturing capability in Western Australia, vertical integration of fabrication and engineering operations, faster prototyping and production capabilities for Nexus platforms, access to skilled workforce and advanced fabrication infrastructure, and enhanced ability to support defense, mining and critical infrastructure customers. This strengthened manufacturing foundation will accelerate production of autonomous communications platforms to meet growing international demand from defense, mining and infrastructure markets.
Financing for the acquisition involves approximately 60% debt funding from an Australian bank, with the remaining 40% coming from equity through a capital raise currently underway. The transaction remains subject to securing this required funding and standard closing conditions, with completion expected on March 31, 2026. According to Chief Executive Officer Brenton Scott, "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."
The acquisition positions CiTech to participate in major allied supply chains while strengthening Australia's sovereign defense manufacturing capability. The company's Nexus platform aims to provide critical mobile telecommunications for mining, defense, border security, surveillance and emergency services sectors. The self-deploying platform addresses limitations of current rapidly deployable communication solutions through patented technologies. More information about the company's technology and operations can be found at https://www.citech.com.au.
Industry implications include potential acceleration of autonomous communications technology deployment across critical sectors, enhanced Australian manufacturing capacity for defense technologies, and increased competition in the rapidly deployable communications market. The acquisition demonstrates how technology companies are increasingly seeking vertical integration to control production quality and timelines while establishing sovereign capabilities in strategic industries. The original press release detailing this transaction can be viewed at https://www.newmediawire.com.
