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 acquire 100% of the issued shares of a Western Australian precision engineering and manufacturing company with strong connections to the defence and mining sector. The acquisition, expected to close on or before May 31, 2026, represents a major step in CiTech's strategy to establish sovereign manufacturing capability in Australia and vertically integrate the production of its Nexus platform and future defence technologies.
The purchase price is AUD $5,775,000 on completion, with deferred payments of AUD $962,500 each on the first and second anniversaries. The target company reported revenue of AUD $7.5 million in FY2025 and a projection of AUD $8.6 million for FY2026, with EBITDA of AUD $1.9 million and a projection of AUD $2.2 million, respectively. Revenue and EBITDA are expected to double within the next two to three years.
The acquisition adds a profitable and well-established engineering and fabrication business to CiTech's operations, providing an immediate earnings base while strengthening the Company's ability to scale production of its Nexus communications platforms. Strategic benefits include immediate sovereign manufacturing capability in Western Australia, vertical integration of fabrication and engineering operations, faster prototyping, production, and deployment of Nexus platforms, access to a highly skilled workforce and advanced fabrication infrastructure, and enhanced capability to support defence, mining and critical infrastructure customers.
"Being able to settle the acquisition represents a significant step in CiTech's growth strategy," said Brenton Scott, Director & CEO of Critical Infrastructure Technologies Ltd. "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."
CiTech is a developer of autonomous, high-capacity mobile communications and security platforms. The Company's self-deploying platform (SDP) provides a solution for limitations of current rapidly deployable communication solutions, including strength of the tower and ability to rapidly self-deploy and operate. The SDP supports radio equipment including LTE and other technological payloads such as surveillance and anti-drone systems. CiTech has completed the research and development phase and is currently commercialising its first product, the Nexus 16, targeting mining, defence, border security and emergency services sectors. More information is available at www.citech.com.au.
