Italian defense firm Leonardo has finalized an agreement to acquire Iveco Defence Vehicles (IDV) for €1.7 billion ($1.9 billion), concluding months of speculation surrounding the sale of the military vehicle manufacturer.
The acquisition, which Leonardo will fund through its existing cash reserves, further strengthens the company’s involvement in land-based defense systems. It follows last year’s strategic collaboration with Germany’s Rheinmetall to develop tanks and combat vehicles.
Importantly, the deal ensures IDV remains under Italian ownership, addressing concerns raised by local politicians over international interest in the firm.
“This acquisition solidifies Leonardo’s role as a key player in Europe’s land defense sector, an area expected to see robust growth in the near future,” said CEO Roberto Cingolani.
Leonardo noted that the purchase will support better integration of its advanced electronics and weapon systems—such as turrets—into IDV’s vehicles, which are used by the Italian and Brazilian armed forces, among others.
Initially, Leonardo had considered acquiring IDV in partnership with Rheinmetall but later opted to proceed independently, citing simplicity and convenience, Cingolani told analysts. Rheinmetall, however, is now in exclusive negotiations with Leonardo to potentially acquire IDV’s military truck division.
IDV, which employs around 2,000 people, posted a 15% rise in revenue last year, reaching €1.13 billion—a growth driven in part by increased global demand for armored vehicles due to the ongoing conflict in Ukraine. The company was previously owned by Exor Group, the holding company controlled by the Agnelli family and the largest shareholder in automaker Stellantis.
Other companies reportedly interested in acquiring IDV included Spain’s Indra and the Franco-German joint venture KNDS.
Leonardo and Rheinmetall are also collaborating on a large-scale project to deliver 1,050 new infantry fighting vehicles and 132 advanced tanks to the Italian army. The vehicles will be based on Rheinmetall’s Lynx and the under-development Panther KF51 platforms, respectively.
IDV is already contributing to this €23 billion program, having secured a 12–15% share in its development and production. The company also partners with Leonardo through the CIO joint venture, which manufactures the VBM Freccia wheeled fighting vehicle and the Centauro wheeled tank for Italy’s military forces.
