Critical Infrastructure Technologies Ltd. (CSE: CTTT) (OTC: CITLF) (FRA: X9V), a developer of autonomous communications and security platforms, announced it has secured finance approval for the debt component of the acquisition price to purchase 100% of the shares of a Western Australian precision engineering and manufacturing company with ties to the defence and mining sectors. The acquisition, valued at AUD $7.7 million, is expected to close by April 30, 2026, subject to standard conditions and the completion of a private placement.
The acquisition underscores CiTech's strategy to establish sovereign manufacturing capability in Australia while vertically integrating production of its Nexus platform and future defence technologies. The target company generated AUD $7.5 million in revenue and AUD $1.9 million in EBITDA for FY2025, with projected FY2026 figures of AUD $8.6 million and AUD $2.2 million, respectively. Revenue and EBITDA are expected to double within two to three years.
The transaction structure includes AUD $5.775 million payable on completion, with deferred payments of AUD $962,500 each on the first and second anniversaries. Additionally, CiTech will assume net working capital adjustments of approximately AUD $2.08 million, comprising cash, stock, accounts receivable and work in progress less creditors. Financing is split 50% debt from an Australian bank, facilitated by Iridium Private, and 50% equity through a private placement launching shortly.
Strategic benefits include immediate sovereign manufacturing capability in Western Australia, vertical integration of fabrication and engineering operations, faster prototyping and deployment of Nexus platforms, access to a skilled workforce and advanced infrastructure, and enhanced support for defence, mining and critical infrastructure customers. This capability will accelerate production of Nexus autonomous communications platforms in response to growing international demand.
Brenton Scott, CEO of Critical Infrastructure Technologies, stated that receiving debt approval is a significant milestone. “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.” He added that it strengthens sovereign Australian defence manufacturing and positions CiTech to participate in major allied supply chains.
The acquisition remains subject to closing the private placement and standard conditions, with completion expected by April 30, 2026. CiTech, listed on the CSE with operations in Perth, Australia, focuses on autonomous, high-capacity deployable technology for mining, defence, border security and emergency services. Its Nexus 16 platform provides critical mobile telecommunications using patented self-deploying technology that supports LTE and other payloads such as surveillance and anti-drone systems.
For more information, visit www.citech.com.au. This news release contains forward-looking information based on management assumptions and subject to risks and uncertainties. The company disclaims any obligation to update such information except as required by law.
