Leonardo to acquire Iveco Defence in €1.7bn deal

Leonardo has signed an agreement to acquire Iveco Defence Vehicles from the Iveco Group in a deal valued at €1.7 billion.

The deal, announced on 30 July, will be financed through existing cash reserves and is expected to close in the first quarter of 2026, subject to regulatory approvals, say the firm.

This marks a serious step in Leonardo’s effort to strengthen its position as a full-spectrum manufacturer in the land defence sector. The company said the acquisition aligns with its current industrial strategy and will allow it to offer integrated vehicle and electronic system solutions across both tracked and wheeled platforms.

According to Leonardo, the deal will expand its operational capabilities, combining its existing sensor, turret, and electronics expertise with Iveco Defence’s portfolio of armoured and tactical vehicles. The two firms are expected to benefit from complementary technologies, commercial channels, and manufacturing bases. The acquisition also aims to enhance Leonardo’s access to export markets and strengthen its offering to European customers.

Iveco Defence, headquartered in Bolzano, reported revenues of €1.133 billion in 2024 with earnings before interest and taxes of €108 million. The company operates five manufacturing facilities in Germany, Romania, and Brazil. It employs around 2,000 people and runs nine commercial offices as well as six research and development centres across Europe and South America.

Leonardo noted that the deal will enable tighter integration of electronic systems into future vehicle offerings. It also stated that further opportunities for collaboration with existing partner Rheinmetall are under consideration, particularly in the heavy vehicle segment.

The acquisition forms part of a broader trend in the European defence sector, where several firms are expanding production and consolidating capabilities to meet growing demand.

European governments have increased investment in armoured vehicle fleets and support platforms, driven by operational requirements related to Ukraine, NATO force posture, and stockpile replenishment.