Prada announced on Tuesday its acquisition of Versace, consolidating two Italian luxury fashion brands.
The transaction for $1.38 billion (£1.04 billion) is below the approximate $2 billion paid by Versace's former parent company, Capri Holdings, for the brand in 2018.
This acquisition expands Prada's current portfolio of designer brands, which includes Miu Miu. The move is positioned within Prada's competitive strategy against conglomerates such as the French LVMH, which encompasses brands like Dior, Fendi, and Louis Vuitton.
In March, Donatella Versace concluded her role as the brand's creative chief after 27 years with the company. Versace is recognized for its distinctive styles and its Medusa head logo.