Critical Infrastructure Technologies Ltd. (CSE: CTTT) (OTC: CITLF) (FRA: X9V) announced it has entered into a binding term sheet to acquire 100% of the issued shares in a Western Australian precision manufacturing company, expanding its advanced production capabilities and securing local sovereign manufacturing capacity for its Nexus 20 and future product lines.
Under the agreement, CiTech will acquire the company from founders for total consideration of AUD $7.7 million, plus standard net debt and working capital adjustments. The acquisition adds a profitable and well-established business with revenue exceeding AUD $7.4 million and EBITDA of more than AUD $1.9 million, providing a robust earnings base to support accelerated growth in sovereign defence manufacturing.
The target company, founded in 1997 and based in Western Australia, has over 25 years of experience delivering precision sheet-metal fabrication, CNC machining, and engineering solutions for defence, mining, infrastructure, and government sectors. It is certified to ISO 9001, ISO 14001, and ISO 45001 standards, and operates a fully equipped in-house manufacturing facility featuring state-of-the-art laser cutting systems, CNC folding and bending machines, robotic welding technology, and advanced CAD/CAM integration. This combination enables production of defence-grade components with precision and efficiency.
Key highlights include strengthening sovereign manufacturing capability in Australia, establishing vertically integrated manufacturing capacity to improve speed to deployment and cost control, and providing immediate eligibility for Defence tenders requiring Defence Industry Security Program (DISP) membership. The business has already achieved DISP accreditation, a critical credential administered by the Australian Department of Defence that ensures companies meet rigorous security and governance standards.
“This acquisition provides CiTech with a consistent revenue stream together with instant profitability, making the CiTech Group cashflow positive from completion,” said Brenton Scott, CEO of CiTech. “It ensures the group can accelerate production of our Nexus 20 and future product lines while strengthening Australia’s sovereign industrial base.”
The acquisition reinforces CiTech’s commitment to building a sovereign Australian manufacturing ecosystem capable of supporting rapid-deployment systems for defence, emergency response, and secure communications. It complements CiTech’s growing network of international partnerships, including collaborations with Babcock International, Terma, and the establishment of an EU presence in Latvia, expanding its reach across NATO’s Eastern Flank and allied markets.
The founders will remain with the business through a structured transition and integration period to ensure operational continuity. The transaction remains subject to due diligence, finalisation of a Share Purchase Agreement, and standard completion conditions. Completion is anticipated within 90 days of the term sheet’s execution.
For more information about CiTech, visit www.citech.com.au.
