Critical Infrastructure Technologies Ltd. has executed a Share Sale Agreement to acquire 100% of a Western Australian precision engineering and manufacturing company with strong connections to defense and mining sectors. The AUD $7.7 million acquisition represents a strategic move to establish sovereign manufacturing capability in Australia and vertically integrate production of the company's Nexus communications platforms.
The transaction provides 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 these figures could double within the next 2–3 years, providing CiTech with an immediate earnings base while scaling production capabilities. The acquisition structure includes AUD $5.775 million payable on completion, with two additional payments of AUD $962,500 on the first and second anniversaries of completion.
Strategic benefits include immediate sovereign manufacturing capability in Western Australia, vertical integration of fabrication and engineering operations, faster prototyping and production of Nexus platforms, and access to a highly skilled workforce with advanced fabrication infrastructure. This enhanced capability positions CiTech to better support defense, mining, and critical infrastructure customers while accelerating production to meet increasing international demand. The company aims to participate in major allied supply chains through this strengthened manufacturing position.
Financing for the acquisition will come from approximately 60% debt funding from an Australian bank and 40% equity funding through a capital raise currently underway. Completion remains subject to securing required funding and standard closing conditions, with an expected completion date of March 31, 2026. CEO Brenton Scott emphasized the acquisition's importance in CiTech's growth strategy, noting it provides immediate revenue and earnings while delivering manufacturing capability required to scale production.
The acquisition strengthens Australia's sovereign defense manufacturing capability at a time when geopolitical tensions highlight the importance of domestic production capacity for critical technologies. For the defense and mining industries, this vertical integration could lead to more reliable supply chains and faster deployment of autonomous communications platforms in remote locations. The transaction demonstrates how technology companies are increasingly seeking manufacturing control to ensure product quality, intellectual property protection, and supply chain security in sensitive sectors. To learn more about the company's technology platforms, visit https://www.citech.com.au.
