Leonardo agrees to acquire Iveco’s defence business for $1.9bn
Italian aerospace and defence conglomerate Leonardo has entered into agreement to acquire Iveco Group’s defence division for an enterprise value of €1.7bn ($1.9bn).
The agreement encompasses both IDV, known for its specialised vehicles for defence and civil protection, and ASTRA, which produces heavy-duty trucks designed for extreme off-road conditions.
This strategic acquisition is in line with Leonardo’s plan to solidify its position as a fully integrated Original Equipment Manufacturer (OEM) within the land defence sector.
The deal is poised to enhance its offerings across both tracked and wheeled platforms, said Leonardo.
Leonardo CEO and general manager Roberto Cingolani said: “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. This transaction reinforces Leonardo’s position as a reference player in the European land defence market, a segment expected to experience sustained growth in the coming years.”
The acquisition will elevate joint commercial prospects by capitalising on the synergistic nature of both companies’ sales networks and their capacity to offer integrated solutions in markets with high potential, said Leonardo.
The collaboration between IDV and ASTRA’s mobility solutions with Leonardo’s advanced systems aims to deliver comprehensive land defence capabilities on an international scale.
The integration is expected to enhance operational efficiency, accelerate technological innovation, and new professional development opportunities due to the combined expertise, logistics, and manufacturing strengths of both entities.
Leonardo, alongside its partner Rheinmetall, will explore potential opportunities within the heavy vehicle system domain.
The transaction is slated for completion by 31 March 2026, pending customary regulatory approvals and the finalisation of carve-out procedures.
Upon successful closure of the deal, Iveco Group plans to distribute net proceeds from the transaction to its shareholders through an extraordinary dividend.
Iveco Group CEO Olof Persson said: “This agreement propels Iveco Group’s defence business into its proper dimension as a key contributor alongside Leonardo in the creation of a focused, world-class player in land defence activities.
Morgan Stanley & Co International served as financial advisor to Leonardo, while Goldman Sachs Bank Europe and Succursale Italia represented as financial advisor for Iveco Group.
In June 2025, Leonardo and Turkish defence company Baykar Technologies unveiled their plan to create a joint venture focused on uncrewed technologies at the International Paris Airshow in Le Bourget, France.
