Leonardo Bolsters Military Might with Strategic €1.7B Pact for Iveco
Leonardo has secured an agreement to obtain Iveco Defence, a division of the Ivec Group, for a total enterprise valuation of EUR 1.7 billion. This arrangement will be financed through current cash reserves. This strategic acquisition represents a significant milestone in Leonardo’s effort to bolster its position as a leading, fully-fledged Original Equipment Manufacturer (OEM) within the land defence domain. The purchase further expands the Group’s broad spectrum of solutions for defence and security, including both tracked and wheeled platforms.
“The procurement of Iveco Defence signifies a crucial success in our pursuit of inorganic growth strategies and supports the holistic execution of our Industrial Plan. This agreement strengthens Leonardo’s role as a major contender in the European land defence sector, which is expected to experience substantial growth in the coming years,” stated Roberto Cingolani, CEO and General Manager of Leonardo.
This acquisition will also improve collaborative commercial positioning, leveraging the synergistic aspects of the two companies’ sales networks and the ability to deliver integrated solutions in high-potential markets.
The unification of Leonardo’s electronic systems – featuring an extensive array of combat electronics sensors and next-generation turrets – with Iveco Defence vehicles will ensure the utmost effectiveness of the proposed operational solutions. The highly specialized knowledge in their respective fields, paired with strong logistics and manufacturing prowess, will promote enhanced operational efficiency and accelerate joint technological progress, while also creating new opportunities for professional development and talent enhancement.
Leonardo, in collaboration with its partner Rheinmetall, will explore potential opportunities in the heavy vehicle system sector.
The finalization of the deal is expected in the first quarter of 2026, subject to regulatory approvals.
The financial advisor for Leonardo is Morgan Stanley & Co. International Plc, while Bonelli Erede acted as legal counsel.
