The acquisition comes as land defence undergoes significant transformation driven by digitalisation of operational and decision-making systems. The shift is increasing demand for integrated capabilities, faster operational response and greater interoperability.
Leonardo said the transaction marks a milestone in its development within the European land defence market, which it expects to see strong growth. The company is transitioning from a provider of integrated technologies to a manufacturer capable of delivering complete platforms.
This includes combining vehicle components with electronic systems into unified, digitally connected solutions. The approach is intended to support operations in increasingly complex and multi-domain environments.
Leonardo has historically specialised in electronic defence systems such as sensors and command-and-control technologies. The integration of IDV capabilities allows it to extend into the design and production of military vehicles.
The combined offering enables delivery of “turnkey” solutions that integrate platforms with advanced software and real-time data processing systems. These systems are designed around modular digital architectures that support operational flexibility.
The company said the new structure strengthens its role as an original equipment manufacturer across both tracked and wheeled platforms. It also enhances its ability to deliver high-performance solutions within interconnected digital ecosystems.
An example cited is the HITFACT MkII turret mounted on the Centauro II armoured vehicle. The system uses digital technologies to communicate with drones, sensors and other units, improving situational awareness and operational coordination.
Leonardo said such systems form part of an intelligent network that enables faster and more effective decision-making in multi-domain operations. The integration of data across platforms is intended to improve mission outcomes.
The acquisition also brings together complementary industrial capabilities. Iveco Defence contributes expertise in mobility, hull design and vehicle integration, while Leonardo provides electronics, defence systems and digital technologies.
This combination is expected to enhance operational efficiency and accelerate technological development. It is also intended to expand Leonardo’s commercial presence in global defence markets.
The transaction builds on long-standing industrial cooperation within the Iveco-OTO Melara Consortium. The partnership has supported programmes including the Centauro II, Freccia armoured vehicles and the Ariete upgrade programme.
With the acquisition, Leonardo consolidates control over the full industrial value chain. The company said this strengthens national production capabilities and supports further development of integrated defence systems.
Source: Leonardo.
