Critical Infrastructure Technologies Ltd. has entered into a binding term sheet to acquire 100% of a Western Australian precision manufacturing company for AUD $7.7 million, plus standard net debt and working capital adjustments. The acquisition represents a strategic move to expand the company's advanced production capabilities and secure local sovereign manufacturing capacity for its Nexus 20 and future product lines. The transaction brings CiTech a profitable business with revenue exceeding AUD$7.4 million and EBITDA of more than AUD$1.9 million based on 2025 figures. This provides a robust earnings base to support accelerated growth in sovereign defence manufacturing, enabling the company to scale production, strengthen supply chain control, and advance delivery of its autonomous communication systems.
The acquisition establishes vertically integrated manufacturing capacity in Australia, improving speed to deployment, cost control, and scalability for defence-grade systems. The Western Australian company, founded in 1997, brings more than 25 years of experience delivering precision sheet-metal fabrication, CNC machining, and engineering solutions for defence, mining, infrastructure, and government sectors. The business 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. The company is certified to ISO 9001, ISO 14001, and ISO 45001 standards, enabling production of defence-grade components with precision and efficiency.
A critical aspect of the acquisition is the target company's DISP accreditation through the Defence Industry Security Program administered by the Australian Department of Defence. This accreditation confirms the company can securely handle classified information, personnel, and projects, enabling closer collaboration with Defence and enhancing Australia's sovereign capability in advanced manufacturing. The DISP membership provides immediate eligibility for Defence tenders and projects requiring this security clearance. Brenton Scott, CEO of CiTech, emphasized the strategic importance of the acquisition. "The business has established itself as a leading precision manufacturer supporting defence and heavy industry in Australia," Scott stated. "This acquisition provides CiTech with a consistent revenue stream together with instant profitability, making the CiTech Group cashflow positive from completion. It ensures the group can accelerate production of our Nexus 20 and future product lines while strengthening Australia's sovereign industrial base."
The transaction remains subject to due diligence and finalization of a Share Purchase Agreement, with completion anticipated within 90 days of the term sheet's execution. The founders will remain with the business through a structured transition period to ensure operational continuity. 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, complementing the company's growing international partnerships including collaborations with Babcock International and Terma.
