Leonardo has agreed to acquire Iveco Defence Vehicles to strengthen its role as a fully integrated original equipment manufacturer in the land defense sector. The transaction, with a total enterprise value of $1.94 billion, is expected to close in the first quarter of 2026, subject to regulatory approvals.
The acquisition is also expected to help boost the two companies’ joint market positioning through their complementary sales networks and potential product integration. The latter possibilities include integrating Leonardo’s electronic systems with combat electronics sensors and next-generation turrets into Iveco Defence vehicles.
Another potential collaboration can extend to Rheinmetall, already a Leonardo military vehicles partner, for other opportunities in heavy vehicles.
Military Vehicle Market Growth
Roberto Cingolani, Leonardo’s CEO and general manager, called the acquisition of Iveco Defence key to implementing the company’s inorganic growth strategy. “This transaction reinforces Leonardo’s position as a reference player in the European land defense market, a segment expected to experience sustained growth in the coming years,” he said.
Iveco Defence Vehicles is a division of the Bolzano, Italy-based Iveco Group. It has five manufacturing locations in Germany, Romania and Brazil. Its product portfolio includes light, medium and heavy-armored vehicles. The company has commercial offices across Europe, the United States and Brazil.