Leonardo has finalized its €1.6-billion ($1.8-billion) acquisition of Iveco Group’s defense division, marking a significant expansion into land warfare systems.
The deal incorporates Iveco Defence Vehicles and ASTRA into Leonardo’s portfolio, adding a range of wheeled and tracked military platforms to its existing expertise in electronics and integrated systems. This move supports Leonardo’s ambition to evolve into a fully integrated original equipment manufacturer in the land defense domain.
By combining vehicle platforms with its command-and-control solutions, electro-optics, and turret technologies, Leonardo aims to deliver complete, end-to-end defense systems rather than individual components. The integration of both companies’ operational and sales networks is also expected to enhance competitiveness, particularly in export markets.
The acquisition strengthens Leonardo’s industrial base by expanding manufacturing capacity and logistics capabilities while enabling collaborative development of next-generation land systems.
More broadly, the defense sector has seen a surge in consolidation. In 2025, AeroVironment acquired BlueHalo for $4.1 billion, followed by its 2026 purchase of Empirical Systems Aerospace for $200 million to enhance prototyping and propulsion capabilities. Meanwhile, Uvision Group completed its acquisition of SpearUAV in December 2025, strengthening its portfolio in AI-enabled loitering munitions.
