€1.7 Billion Deal Leonardo to Acquire Iveco Defence to strengthen Leadership in European Land Defence Market

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Leonardo has announced a landmark agreement to acquire Iveco Defence Vehicles (IDV) from Iveco Group for an enterprise value of €1.7 billion. The acquisition, to be financed from Leonardo’s available cash reserves, will reinforce the company’s leadership in the European land defence sector and broaden its global footprint through complementary capabilities and expanded market access.

Leonardo, a global leader in aerospace, defence, and security, has signed a definitive agreement to acquire Iveco Defence Vehicles, a division of the Iveco Group, in a deal valued at €1.7 billion. The acquisition marks a pivotal step in Leonardo’s industrial strategy to become a fully integrated Original Equipment Manufacturer (OEM) in the land defence sector.The transaction, which is expected to close in Q1 2026 pending regulatory approvals, will be entirely funded through Leonardo’s existing cash reserves.

“The acquisition of Iveco Defence represents a key milestone in the execution of our inorganic growth strategy and supports the full implementation of our Industrial Plan.  It reinforces Leonardo’s position as a reference player in the European land defence market, a segment expected to see sustained growth.

Roberto Cingolani, CEO and General Manager of Leonardo.

Strategic Synergies to Drive Innovation and Market Expansion

The deal brings together two highly complementary defence technology players. Iveco Defence’s strong presence in wheeled vehicle systems will combine with Leonardo’s capabilities in electronic warfare systems, sensors, and next-generation turret technology, creating a powerful portfolio of integrated land combat solutions. Just a few weeks ago, IDV was awarded a three-year contract by the NATO Support and Procurement Agency (NSPA) for the concept development and testing of robotic and autonomous systems (RAS).

Key Strategic Benefits

Leonardo is strengthening its position in the global defence market through the acquisition and is benefiting from expanded commercial reach and new market opportunities. The integration of advanced combat electronics into Iveco Defence's vehicle platforms enables the development of high-performance, networked systems tailored for future operational scenarios. Additionally, the strategic partnership accelerates technological progress and creates synergies in research and innovation. At the same time, the merger opens up new prospects for attracting and developing highly qualified professionals in engineering and related fields. Together with long-standing partner Rheinmetall, Leonardo also plans to explore further business opportunities in the heavy vehicle systems segment — particularly for NATO countries and allied markets.

Background 

Iveco Defence Vehicles (IDV) is a division of the Iveco Group, headquartered in Bolzano, Italy. In 2024, the company reported revenues of €1.133 billion and an EBIT of €108 million.The business operates five manufacturing sites (in Germany, Romania, and Brazil), employs approximately 2,000 people, and maintains nine commercial offices across Europe, the United States, and Brazil. It also runs six researchand development centers located in Italy, Brazil, the United Kingdom, and Germany. The product portfolio spans light and medium armoured vehicles, heavy armoured platforms, and logistic and tactical vehicles, primarily for military applications.                                                                       kib