ROME — Italian defense giant Leonardo has agreed to buy Italy’s Iveco Defence Vehicles for €1.7 billion ($1.9 billion), ending months of speculation about the future of the up-for-sale military vehicle maker.

Leonardo has acquired Iveco Defence, an offshoot of Italian land vehicle manufacturer Iveco, in a €1.7 billion (US$1.94 billion) deal to boost its defence and security portfolio. Leonardo’s electronic systems capabilities, which includes turrets and combat sensors, will be integrated with Iveco Defence.

Leonardo and the Iveco Group announced in separate press releases on 30 July that they had signed an agreement for Leonardo to take over Iveco Defence for EUR1.7