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Italian defence company Leonardo has signed an agreement to acquire armoured vehicle manufacturer Iveco Defence, a division of the Iveco Group.
The move is expected to consolidate its position in the European land defence sector under the €1.7 billion agreement.
The integration of Leonardo’s electronic systems, including a complete suite of combat electronics sensors and next-generation turrets, into Iveco Defence vehicles is expected to enhance solutions for defence and security, covering both tracked and wheeled platforms.
The product portfolio spans light and medium armoured vehicles, heavy armoured platforms and logistic and tactical vehicles, primarily for military applications.
“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,” Leonardo general manager and chief executive officer Roberto Cingolani said.
“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.”
Iveco Defence Vehicles operates five manufacturing sites in Germany, Romania and Brazil and employs around 2,000 people and maintains nine commercial offices across Europe, the United States and Brazil.
It also runs six research and development centres located in Italy, Brazil, the United Kingdom and Germany.
“This strategic acquisition marks a significant step in Leonardo’s plan to strengthen its role as a leading, fully integrated original equipment manufacturer in the land defence domain,” according to a statement from Leonardo.
“The acquisition will also boost joint commercial positioning, leveraging the complementary nature of the two companies’ sales networks and the ability to offer integrated solutions in high-potential markets.
“The highly specialised know-how in their respective verticals, combined with robust logistics and manufacturing capabilities, will drive greater operational efficiency and accelerate joint technological development, while also creating new opportunities for professional skill development and talent enhancement.
“Leonardo, in collaboration with its partner Rheinmetall, will evaluate potential opportunities on the heavy vehicle system.”
