Leonardo has agreed to acquire Iveco Defence for an enterprise value of €1.7 billion, strengthening its position in the European defense market.

Target Information

Iveco Defence is a division of the Iveco Group, headquartered in Bolzano, Italy. In 2024, the division reported revenues of €1.133 billion, with an EBIT of €108 million. It operates five production sites across Germany, Romania, and Brazil, employing approximately 2,000 staff members. Additionally, It has nine commercial offices located in Europe, the United States, and Brazil, along with six research and development centers in Italy, Brazil, the UK, and Germany. Iveco Defence specializes in the design, production, and logistical support of military vehicles, offering a product portfolio that includes light and medium armored vehicles, heavy armored vehicles, and logistical and tactical vehicles.

Industry Overview

The European defense industry is witnessing significant growth due to increasing geopolitical tensions and a concerted effort from governments to enhance military capabilities. As a result, companies within this sector are experiencing heightened demand for advanced technological solutions and integrated systems. The evolving landscape necessitates a robust response to changing security threats, leading to investments in innovative technologies and modernization of existing defense infrastructures.

Within Italy, the defense sector is particularly dynamic, benefitting from a strong industrial base that includes several leading firms in aerospace and defense. Government expenditure on defense has seen a favorable increase, reflecting the na