Italian defense and security company Leonardo has completed the acquisition of Iveco Group’s land defense business, including Iveco Defence Vehicles (IDV) and the ASTRA brand, in a major move that is expected to reshape the European land defense industry. According to the reported details, the transaction was completed at an enterprise value of €1.7 billion, equivalent to roughly $1.9 billion. Leonardo later stated that, following contractual adjustments, the final closing price came to approximately €1.6 billion. The company also noted that the acquisition was financed through its existing cash resources.

This acquisition is being seen as a critical step in Leonardo’s broader strategy to become a fully integrated prime contractor in the land defense sector. By bringing IDV into its structure, Leonardo significantly expands its portfolio of wheeled and tracked platforms while also strengthening its ability to combine vehicle manufacturing with advanced electronic systems, command-and-control capabilities, electro-optical solutions, and modern turret technologies. The company believes this integration will allow it to offer more comprehensive and competitive end-to-end solutions to both domestic and international customers.

Iveco Defence Vehicles has long held a strong position in the European land systems market. Its portfolio includes high-profile platforms such as the Centauro II wheeled armored vehicle, the Ariete C2 main battle tank, and the Viking multi-role unmanned ground vehicle. The company reportedly generated around €1.4 billion in revenue last year and operates six production sites across Italy, Germany, Romania, and Brazil. Leonardo and IDV have also worked together for years on major land programs, particularly the Centauro II, which suggests that the industrial integration process could move forward with relative efficiency and operational coherence.

The roots of the deal go back to July 30, 2025, when Leonardo first announced that it had signed an agreement to acquire Iveco Defence. Iveco Group had already begun separating its defense activities from its broader commercial vehicle operations as part of a strategic restructuring process. By March 17, 2026, all required conditions for the deal had been fulfilled, and full ownership was officially transferred to Leonardo the following day. This separation also carried wider implications for Iveco Group, as it supported the path toward discussions involving other parts of its business, including commercial vehicle operations.

Leonardo’s acquisition of IDV is more than a simple expansion through purchase. It represents a deliberate effort to consolidate vehicle production, mission systems, and integrated defense capabilities under one industrial structure. The move also aligns with Leonardo’s recent efforts to strengthen its role in Italy’s military modernization plans and in broader European defense cooperation initiatives. With this step, Leonardo is positioning itself as a far stronger actor in the land defense segment, while Europe gains another large-scale defense company capable of competing in an increasingly demanding strategic environment.