Italy’s Leonardo closes on $1.9B Iveco land vehicle acquisition

BELFAST — Italian manufacturer Leonardo has acquired local firm Iveco Defence Vehicles (IDV) in a deal valued at €1.7 billion ($1.9 billion).

The move “marks a significant step in Leonardo’s plan to strengthen its role as a leading, fully integrated Original Equipment Manufacturer (OEM) in the land defence domain,” the European giant said in a Wednesday statement.

“The acquisition further enhances the Group’s [Leonardo and its subsidiaries’] comprehensive portfolio of solutions for defence and security, covering both tracked and wheeled platforms,” the statement added.

Completion of the acquisition comes after Leonardo initially disclosed a plan to do so in July 2025.

Leonardo and Iveco have partnered for many years on the antitank Centauro II wheeled platform. Other key platforms in Iveco’s product portfolio include the Ariete C2 tracked main battle tank and the Viking multirole uncrewed ground vehicle. As noted in the announcement, IDV reported €1.4 billion in revenues last year, and operates from six production sites across Italy, Germany, Romania, and Brazil.

Leonardo said “available cash resources” will finance the acquisition, which is also planned to leverage “the complementary nature of the two companies’ sales networks and the ability to offer integrated solutions in high-potential markets.”

Further, the announcement noted that combining complimentary product ranges based on Leonardo’s electronics, command and control systems, electro-optics and advanced turrets, alongside IDV’s vehicles, sets up a path to deliver “end-to-end” solutions for customers. 

Leonardo’s land domain expansion follows company efforts to closely support Italian army modernization. Such a tight focus on collaboration with the service has led to the firm developing a military vehicles joint venture with Germany’s Rheinmetall to prioritize new Main Battle Tanks and Infantry Fighting Vehicles (IFV) for Rome.