Critical Infrastructure Technologies Signs Share Sale Agreement to Acquire Western Australian Engineering Business

Key Takeaways

• Acquisition price AUD 7.7 million for WA engineering firm
• Target revenue AUD 7.5 million, EBITDA AUD 1.9 million FY2025
• Expected revenue and EBITDA to double in 2‑3 years
• Enables vertical integration of Nexus communications platform
• Financing split 60% debt, 40% equity, closing end March

Summary

Critical Infrastructure Technologies (CiTech) signed a Share Sale Agreement to acquire 100% of a Western Australian precision‑engineering firm for AUD 7.7 million, adding sovereign manufacturing capability and vertical integration for its Nexus communications platform. The target reported FY2025 revenue of about AUD 7.5 million and EBITDA of AUD 1.9 million, with projections to double both metrics within 2‑3 years. Payment will be AUD 5.775 million at closing and two equal instalments of AUD 962,500 over the following two years, plus a working‑capital adjustment. Financing is expected to be 60% debt and 40% equity, with closing slated for March 31, 2026.

Pulse Analysis

Critical Infrastructure Technologies (CiTech) has positioned itself as a niche player in autonomous, high‑capacity communications for defence, mining and critical‑infrastructure customers. While its Nexus platform promises rapid deployment, the company has long lacked an in‑house manufacturing footprint capable of meeting large‑scale orders. Australian policy increasingly favours sovereign defence production, offering tax incentives and preferential procurement for locally built systems. By securing a domestic engineering partner, CiTech not only aligns with national security objectives but also reduces reliance on overseas supply chains that can be vulnerable to geopolitical disruptions.

The signed Share Sale Agreement transfers 100 percent of a Western Australian precision‑engineering firm to CiTech for AUD 7.7 million, with an initial cash payment of AUD 5.775 million and two deferred instalments of AUD 962,500 each. The target generated roughly AUD 7.5 million in revenue and AUD 1.9 million EBITDA in FY2025, and management projects a doubling of both metrics within the next two to three years. The transaction also includes a net working‑capital adjustment of about AUD 2.08 million, and will be funded roughly 60 percent by debt and 40 percent by an equity raise currently underway.

From an investor standpoint, the acquisition delivers an immediate earnings base and a scalable production line for the Nexus 16 and future platforms, potentially accelerating revenue growth as defence and mining contracts expand. The vertical integration shortens prototype cycles, lowers unit costs, and enhances CiTech’s ability to compete for allied supply‑chain slots. If the financing closes as scheduled by the end of March, the deal could serve as a catalyst for the company’s next funding round and improve its valuation relative to peers in the critical‑infrastructure technology space.