Critical Infrastructure Technologies to Acquire Western Australian Precision Manufacturer for Sovereign Defence Capability
Critical Infrastructure Technologies Ltd. is acquiring a Western Australian precision manufacturing company to strengthen Australia's sovereign defence manufacturing capacity and accelerate production of its autonomous communication systems.
Critical Infrastructure Technologies Ltd. (CSE: CTTT) 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 target company, founded in 1997 and based in Western Australia, 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 (Quality), ISO 14001 (Environment), and ISO 45001 (Safety) standards.
The acquisition adds immediate financial strength to CiTech, with the target company generating 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 CiTech to scale production, strengthen supply chain control, and advance delivery of its autonomous communication systems.
A critical advantage of this acquisition is the target company's Defence Industry Security Program (DISP) accreditation, 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 ensures immediate eligibility for Defence tenders and projects requiring 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 establishes vertically integrated manufacturing capacity in Australia, improving speed to deployment, cost control, and scalability for defence-grade systems. The combination of modern equipment, skilled personnel, and robust quality management systems enables production of defence-grade components and assemblies with precision, repeatability, and efficiency.
The founders will remain with the business through a structured transition and integration period to ensure operational continuity and maintain quality standards. 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 company being acquired has not been named pending completion of due diligence.
This 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, further expanding its reach across NATO's Eastern Flank and allied markets. To learn more about the company, visit https://www.citech.com.au.