Critical Infrastructure Technologies Ltd (CiTech) has entered into a binding term sheet to acquire a Western Australian precision acturing company for AUD $7.7 million, strengthening its position in sovereign defence manufacturing and expanding its local production capacity.
The acquisition will provide CiTech with direct access to advanced facilities and a skilled workforce, enabling it to accelerate production of its autonomous Nexus 20 communication systems and future product lines.
The target business, established in 1997, has more than 25 years’ experience delivering precision sheet-metal fabrication, CNC machining and engineering solutions for the defence, mining, infrastructure and government sectors. It is certified to ISO 9001 (Quality), ISO 14001 (Environment) and ISO 45001 (Safety) standards and operates a fully equipped facility featuring state-of-the-art laser cutting systems, robotic welding technology and advanced CAD/CAM integration.
Under the agreement, CiTech will acquire the company from its founders for AUD $7.7 million plus standard net debt and working capital adjustments. The business generates more than AUD $7.4 million in annual revenue and over AUD $1.9 million in EBITDA, providing an immediate boost to CiTech’s earnings base and cashflow position.
“The business has established itself as a leading precision manufacturer supporting defence and heavy industry in Australia,” said Brenton Scott, CEO of CiTech. “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 acquired company has also achieved Defence Industry Security Program (DISP) accreditation, allowing it to work securely with Defence and its supply chain partners. “Achieving DISP accreditation represents a significant milestone,” Scott added. “It demonstrates our shared commitment to the security, integrity, and resilience required to deliver mission-critical systems to Defence and allied nations.”
The company’s founders will remain through a structured transition period to ensure operational continuity. Completion is expected within 90 days, subject to due diligence and finalisation of the share purchase agreement.
The acquisition forms part of CiTech’s broader strategy to strengthen Australia’s sovereign industrial capabilities while expanding its international partnerships, including collaborations with Babcock International and Terma, and establishing a European presence in Latvia to support NATO-aligned markets.
