Prada announced on Tuesday that it has acquired Versace, bringing two major Italian luxury fashion houses under one roof.
The $1.38bn (£1.04bn) deal is well below the roughly $2bn that Versace's former parent company, Capri Holdings, paid for the brand in 2018.
The acquisition expands Prada's portfolio of designer brands - including Miu Miu - as it seeks to compete with rivals including French conglomerate LVMH, which owns Dior and Fendi in addition to Louis Vuitton.
The company is being sold at a roughly $700m loss after Versace's sales slowed, along with the sale of Capri Holdings' other brands, which include Michael Kors and Jimmy Choo.
During Capri Holdings' ownership, Versace shifted from its recognisable ornate designs to embrace a more minimalist trend – while hiking prices.
