Italy defence group Leonardo completed its €1.6 billion acquisition of automative Iveco Group’s defence business in March, strengthening the Italian aerospace and defence group’s position in land systems as European governments increase spending on armoured vehicles and military mobility.
The acquisition covers Iveco Defence Vehicles (IDV) and the ASTRA brand, which together generated €1.37 billion in revenue in 2025. The business employs around 2,000 people and operates six manufacturing sites across Italy, Germany, Romania and Brazil, with a portfolio spanning armoured vehicles, tactical vehicles and military logistics platforms.
Leonardo paid €1.6 billion for the business, below the €1.7 billion enterprise value originally agreed with Iveco. The acquisition was financed from Leonardo’s existing cash and was completed on 18 March, with IDV’s financial results incorporated into Leonardo’s accounts from 1 April.
The deal gives Leonardo a broader land-defence offering alongside its existing weapons, electronics and turret capabilities, including through the 50-50 Iveco-Oto Melara consortium that produces the Centauro II armoured vehicle. Leonardo said the acquisition would allow it to offer more integrated solutions combining its systems and sensors with IDV’s vehicle platforms.
The acquisition is already contributing materially to Leonardo’s growth. The company estimates that IDV will add around €1.2 billion of orders and €1.1 billion of revenue to its results between April and December 2026, with €120 million of EBITA and €220 million of free operating cash flow.
