Critical Infrastructure Technologies Ltd. (CSE: CTTT) (OTC: CITLF) (FRA: X9V) announced the execution of a Share Sale Agreement to acquire 100% of the issued shares of a Western Australian precision engineering and manufacturing company with strong ties to the defence and mining sectors.
The acquisition, valued at AUD $7.7 million, is a strategic move to establish sovereign manufacturing capability in Australia and vertically integrate the production of its Nexus platform and future defence technologies. The target company generated approximately AUD $7.5 million in revenue and AUD $1.9 million in EBITDA for fiscal year 2025, with projected growth expected to double revenue and EBITDA within the next two to three years.
Under the terms of the agreement, consideration will be paid as follows: AUD $5,775,000 on completion, AUD $962,500 on the first anniversary, and AUD $962,500 on the second anniversary. CiTech will also assume net working capital adjustments estimated at approximately AUD $2.08 million.
The acquisition provides CiTech with immediate sovereign manufacturing capability in Western Australia, vertical integration of fabrication and engineering operations, faster prototyping and production of Nexus platforms, access to a skilled workforce and advanced fabrication infrastructure, and enhanced capability to support defence, mining, and critical infrastructure customers.
Brenton Scott, CEO of Critical Infrastructure Technologies, emphasized the significance of the deal. "The execution of the Share Sale Agreement 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. Importantly, it strengthens sovereign Australian defence manufacturing capability and positions CiTech to participate in major allied supply chains."
The acquisition is expected to be financed through a combination of debt and equity, with approximately 60% debt funding from an Australian bank and 40% equity through a capital raise currently underway. Completion is expected on March 31, 2026, subject to securing funding and standard closing conditions.
CiTech, listed on the CSE with operations in Perth, Western Australia, develops autonomous, high-capacity mobile communications and security platforms. The Company's first product, the Nexus 16, targets mining, defence, border security, and emergency services sectors. Using patented technologies, the self-deploying platform provides rapidly deployable communication solutions for various applications.
For more information about the Company, visit www.citech.com.au.
