Leonardo completes Iveco Defence Vehicles acquisition

Leonardo has completed its acquisition of Iveco Defence Vehicles (IDV) Group S.r.l. With the close of this deal, the company is now positioned to benefit even more from Italy’s modernisation.

By Sam Cranny-Evans, editor of Calibre Defence, published on March 19, 2026. 

Leonardo has completed its €1.7 billion acquisition of the IDV Group that was announced in July 2025, according to a March 18 press release. The deal has been funded by Leonardo’s internal cash reserves and valued at €1.6 billion ($1.81 billion/£1.34 billion). The value was revised slightly through contractual adjustments. 

It “marks a significant step in Leonardo’s plan to strengthen its role as a leading, fully integrated Original Equipment Manufacturer in the land domain,” the press release states. Leonardo and the IDV Group have cooperated for many years on armoured vehicles like the Centauro II. Together, they have succeeded in securing contracts with Brazil and Italy, amongst others. 

In terms of the deal itself, the Iveco Group separated its defence business into the IDV Group in February 2025. This facilitated the deal with Leonardo, which was then announced in July. Prior to that, IDV had been a division within Iveco, standing it up as a separate company provided flexibility. 

Leonardo looks set to gain a lot of value from the deal. The IDV Group reported revenues of €1.36 billion in 2025, and operates six manufacturing sites in Italy, Germany, Romania, and Brazil. It employs approximately 2,000 people and provides Leonardo with a vertically integrated vehicle offering. 

Iveco was also expected to gain between 12% and 15% of Italy’s armoured vehicle modernisation. Led by Leonardo, that effort was expected to cost between €23 and €24 billion. 

Calibre comment: A new age in defence industry consolidation

The defence industry has consolidated into fewer and fewer companies over the course of several decades. As governments reduced funding in the 1990s, many entities diversified away from defence, or were consumed by the emerging primes. Companies like General Dynamics, Lockheed Martin, and BAE Systems became the dominant movers in defence. Through their acquisitions, the number of options for governments was reduced. 

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The Ukraine war and heightened threat environment that had preceded it, has led to the launch of several new companies. This has built the defence ecosystem somewhat, introducing more diversity. However, at the same time, companies like Leonardo are aiming to become “a multinational One Company.” This broadly entails having several different businesses able to provide a complete range of solutions – from AI to cyber-security, and platforms. Some notable examples of this growth include companies like Anduril and the EDGE Group, which have gained those capabilities through strategic acquisitions. 

The lead image shows a Centauro II armoured reconnaissance vehicle, which is built by Iveco and equipped with a turret from Leonardo. Credit: Leonardo.