Leonardo Acquire Iveco Defence Vehicles, ASTRA
LEONARDO completed the acquisition of Iveco Group’s Defence Business (IDV and ASTRA brands) for a price of US$1.84 billion in line with the agreed Enterprise Value disclosed of US$1.9B minus agreed contractual adjustments. The transaction is financed through available cash resources. This strategic acquisition 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 acquisition further enhances the Group’s comprehensive portfolio of solutions for defence and security, covering both tracked and wheeled platforms.
“The acquisition strengthens our position as a leading player in the land defence sector and enhances our competitiveness in a market offering significant long-term growth potential. Through this transaction, Leonardo acquires the industrial capabilities required to deliver fully integrated platforms, spanning both mobility and payload, and takes a further step forward in inorganic growth strategy, one of the pillars underpinning the execution of our Industrial Plan”, stated Leonardo CEO and General Manager Roberto Cingolani.
The acquisition also boosts joint commercial positioning, leveraging the complementary nature of the two companies’ sales networks and the ability to offer integrated solutions in high-potential markets. Leonardo’s ability to offer a full-spectrum electronics suites, ranging from command-and-control systems to electro-optics and next-generation turrets, combined with IDV’s vehicle platforms, ensures to deliver high-performance, and end-to-end operational solutions. The highly specialised expertise of the two companies in their respective verticals, combined with robust logistics and manufacturing capabilities, drives operational synergies and accelerates joint technological development, while also creating new opportunities to further enhance technological capabilities and strengthen employees’ professional skills.
Leonardo also announced the full acquisition of GEM Elettronica, increasing its stake from 65% to 100%. The transaction enables Leonardo to strengthen its full suite of radar and systems for naval and coastal applications thanks to the full integration of the product portfolio.
Historically a benchmark in the development of electronic defence systems such as sensors and command-and-control systems, Leonardo now integrates these capabilities with IDV’s expertise in the design and production of military vehicles. This creates a comprehensive industrial capability able to deliver “turnkey” solutions: from the vehicle itself to the electronic systems that form its operational brain, based on advanced software, real-time data processing and modular digital architectures.
This model strengthens Leonardo’s role as an integrated industrial manufacturer (OEM – original equipment manufacturer), with a portfolio covering tracked and wheeled platforms and high-performance operational solutions. The technological backbone consists of natively digital and secure electronic systems, capable of connecting sensors, defence systems, and command-and-control systems into a single integrated multi-domain ecosystem.
The operation brings together complementary capabilities: on one hand, Iveco Defence’s strengths in mobility, hull design and vehicle integration; on the other, Leonardo’s expertise in electronics, defence systems, secure digital technologies and platform integration. This evolution enhances operational efficiency, accelerates shared technological development, and expands commercial presence in high-potential markets, contributing to strengthening the global reach of the combined offering. A key element is the industrial continuity with the Iveco-OTO Melara Consortium (CIO), owned 50% by IDV and 50% by OTO Melara (now Leonardo). This partnership, active for over 40 years, has produced landmark programmes for the Italian Army and beyond, such as the Centauro II armoured vehicle, the Freccia Medium Armoured Vehicles (VBM), and the Ariete vehicle upgrade programme. With this acquisition,Leonardo consolidates control over the entire industrial value chain, further strengthening national development and production capabilities.
The consolidation of land defence activities is part of a broader strategy aimed at integrating capabilities and platforms into a multi-domain offering. This vision is concretely embodied in Michelangelo Dome, an advanced integrated defence system that leverages proprietary capabilities, assets, and technologies across the air, land, sea, space, and cyber domains, relying on artificial intelligence, high-performance computing, cloud, and data fusion.Digital technologies act as a key enabler, allowing real-time data integration and the generation of advanced situational awareness across domains. In continuity with other strategic initiatives, such as the joint venture with Rheinmetall for the development of land defence systems, this contributes to building a competitive and integrated European industrial ecosystem.
Through these synergies with major international players – one of the cornerstones of the 2026-2030 Industrial Plan – Leonardo strengthens its role as a key player in the development of a comprehensive range of solutions: armoured, amphibious and tactical-logistics vehicles for defence, security, and civil protection; as well as Unmanned Ground Vehicles (UGVs), which are becoming increasingly central in modern operational scenarios. The integration of platforms and digital technologies also enables expanded applications in dual-use domains, both civilian and military, from security to emergency management.
Beyond reinforcing Leonardo’s role as a global security player, the acquisition promotes technological innovation, skills growth, and the enhancement of human capital, key elements for sustaining long-term competitiveness and ensuring stability, strategic autonomy, and the protection of communities.–-shp/adj/dl (Pix:LEONARDO)