Critical Infrastructure Technologies Executes Term Sheet To Acquire State Of The Art Engineering Business With Strong Defence And Mining Connections, Western Australia

Executive Summary

• Critical Infrastructure Technologies Ltd. (CiTech) entered a binding term sheet to acquire 100% of the issued shares of an undisclosed Western Australian precision‑manufacturing company for AUD 7.7 million (plus net debt/working‑capital adjustments).
• The target generates > AUD 7.4 million revenue and > AUD 1.9 million EBITDA (2025), providing CiTech with immediate cash‑flow positivity, a solid earnings base, and sovereign defence manufacturing capability in Australia.
• Acquisition grants DISP accreditation, enabling CiTech to bid on Australian Defence tenders and to scale production of its Nexus 20 (and future) autonomous communications platforms.

Key Details

• Consideration: AUD 7.7 million cash for 100% of shares; adjustments for net debt and working capital.
• Target Financials (2025): Revenue > AUD 7.4 million; EBITDA > AUD 1.9 million.
• Strategic Benefits:
• Direct access to ISO‑9001, ISO‑14001, ISO‑45001 certified facility with laser cutting, CNC folding/bending, robotic welding, and CAD/CAM integration.
• Skilled workforce and modern equipment enable faster prototyping, cost control, and scalable production of defence‑grade components.
• Immediate eligibility for Defence Industry Security Program (DISP) tenders and projects.
• Integration Plan: Founders will remain during a structured transition period to ensure operational continuity; completion expected within 90 days of term‑sheet execution pending due diligence and SPA finalisation.
• Corporate Impact: Acquisition makes the CiTech Group cash‑flow positive at closing, strengthens its sovereign manufacturing ecosystem, and supports rapid‑deployment systems for defence, emergency response, and secure communications.
• Related Partnerships: Complements existing collaborations with Babcock International, Terma, and EU presence in Latvia, expanding reach across NATO’s Eastern Flank.

Notable Quotes

“This acquisition provides CiTech with a consistent revenue stream together with instant profitability, making the CiTech Group cash‑flow positive from completion.” – Brenton Scott, CEO & Director, Critical Infrastructure Technologies Ltd.

“Achieving DISP accreditation represents a significant milestone… it demonstrates our shared commitment to the security, integrity, and resilience required to deliver mission‑critical systems to Defence and allied nations.” – Brenton Scott.