Critical Infrastructure Technologies Ltd. (CSE: CTTT) (OTC: CITLF) (FRA: X9V) announced that it has received finance approval for the debt component of the acquisition price to purchase 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, represents a strategic move to establish sovereign manufacturing capability in Australia and vertically integrate production of its Nexus platform and future defence technologies.
The target company generated revenue of AUD $7.5 million in FY2025 and EBITDA of AUD $1.9 million, with projections for FY2026 reaching AUD $8.6 million in revenue and AUD $2.2 million in EBITDA. Management expects revenue and EBITDA to double within the next two to three years. The purchase price will be paid through a combination of debt and equity, with AUD $5.775 million due on completion, followed by two deferred payments of AUD $962,500 each on the first and second anniversaries. Additionally, CiTech will 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. This strengthened manufacturing base will accelerate production of the Nexus autonomous communications platforms to meet growing international demand.
Brenton Scott, Chief Executive Officer, stated, “Being able to settle 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. Importantly, it strengthens sovereign Australian defence manufacturing capability and positions CiTech to participate in major allied supply chains.”
The financing structure comprises 50% debt funding from an Australian bank, facilitated by Iridium Private, and 50% equity funding through a private placement launching shortly. Completion is expected by April 30, 2026, subject to closing the private placement and standard conditions. The acquisition remains a key milestone in CiTech’s strategy to become a leading provider of autonomous, high-capacity mobile communications and security platforms. More information about the Company can be found at www.citech.com.au.
