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Critical Infrastructure Technologies Signs Share Sale Agreement to Acquire Western Australian Engineering Business
Thenewswire· 2026-03-11 13:00
Core Insights - The acquisition of a Western Australian precision engineering and manufacturing company enhances Critical Infrastructure Technologies Ltd.'s sovereign manufacturing capabilities and provides immediate revenue and EBITDA contributions [1][2] Transaction Highlights - The acquisition is a strategic move to establish sovereign manufacturing capability in Australia and vertically integrate the production of the Nexus platform and future defense technologies [2] - The transaction adds a profitable engineering and fabrication business, providing an immediate earnings base and strengthening production scalability for Nexus communications platforms [2] Transaction Structure - The total purchase price for the acquisition is AUD $7,700,000, with net working capital adjustments estimated at approximately AUD $2.08 million [3][5] - Payment structure includes AUD $5,775,000 payable on completion, followed by two additional payments of AUD $962,500 on the first and second anniversaries of completion [6] Strategic Benefits - The acquisition will enable faster prototyping, production, and deployment of Nexus platforms, addressing increasing demand from international defense, mining, and infrastructure markets [4][7] - It provides access to a highly skilled workforce and advanced fabrication infrastructure, enhancing capabilities to support critical sectors [7] Financing Structure - The acquisition will be financed through approximately 60% debt funding from an Australian bank and 40% equity funding through a capital raise currently underway [12] - Projected revenue for FY2025 is approximately AUD $7.5 million, with EBITDA expected to be around AUD $1.9 million, and both metrics are anticipated to double within the next 2–3 years [5] Executive Commentary - The CEO of Critical Infrastructure Technologies emphasized that the acquisition represents a significant milestone in the company's growth strategy, providing immediate revenue and manufacturing capabilities to scale production [8]