In a landmark move set to reshape the luxury fashion landscape, Prada has agreed to acquire its longtime Italian rival, Versace, in a deal valued at $1.36 billion (£1.06 billion). The Prada Group confirmed the acquisition on Thursday, noting the historic unification of two of Italy’s most iconic designer labels.
This strategic merger marks a bold step for the Milan-based Prada Group, which already owns powerhouse brands like Miu Miu and Church, further cementing its place as a dominant player in global luxury fashion.
“We aim to continue Versace’s legacy celebrating and re-interpreting its bold and timeless aesthetic,” said Prada chairman Patrizio Bertelli, underscoring the group’s intention to honor the brand’s heritage while ushering in a new chapter.
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A New Luxury Powerhouse in the Making
With the acquisition of Versace, Prada is now positioned to challenge the reign of French fashion conglomerates such as LVMH (Louis Vuitton Moët Hennessy) and Kering (owners of Gucci, Balenciaga, and more). The deal not only expands Prada’s portfolio but also creates a multi-billion dollar fashion group capable of competing on a much larger scale.
The acquisition includes Versace’s existing debt and comes at a time when the brand has faced financial challenges, reportedly operating at a loss due to a global slowdown in demand for high-end fashion.
Interestingly, the $1.36 billion price tag is significantly lower than the $2.15 billion paid by Capri Holdings when it bought Versace in 2018. Capri Holdings, the current owner of Michael Kors and Jimmy Choo, had reportedly been in negotiations with Prada since February 2025.
Leadership and Vision Moving Forward
The transition comes with major leadership changes. In March 2025, legendary designer Donatella Versace stepped down as creative director, a role she has held since the tragic murder of her brother Gianni Versace in 1997. At 69, Donatella now serves as chief brand ambassador, maintaining a strong connection to the fashion house she helped preserve and transform over nearly three decades.
Taking her place is Dario Vitale, a visionary known for his work as the former design and image director at Prada’s Miu Miu. His appointment as chief creative officer signals a potential shift in design direction, blending Prada’s minimalism with Versace’s signature boldness.
“Versace has huge potential. The journey will be long and will require disciplined execution and patience,” said Andrea Guerra, CEO of the Prada Group, emphasizing a measured approach to growth and integration.
What This Means for the Fashion World
This move is more than just a business deal — it’s a cultural moment. By combining Prada’s minimalist elegance with Versace’s flamboyant glamour, the fashion world is poised to witness a fusion of Italian design excellence like never before.