In April 2025, Prada announced that it had entered into a definitive agreement to acquire 100% of Versace from Capri Holdings. Under the terms of the deal, the Prada Group will acquire Versace at a total enterprise value of USD 1.375 billion on a debt- and cash-free basis. Owning Versace, which is renowned for its bold, baroque-style prints, will allow Prada, known for its minimalist aesthetic, to attract a broader customer base.

The announcement follows months of speculation about a potential merger between the two iconic Italian fashion houses, and more recently, rumours that the deal might collapse due to market volatility sparked by United States President Trump’s tariff policies.

Despite their contrasting styles, Versace’s flamboyant exuberance versus Prada’s refined minimalism, the merger is expected to bolster Italy’s presence in a luxury fashion landscape dominated by French conglomerates, particularly LVMH, the owner of Louis Vuitton.

Both brands, which operate global supply chains and cater to expansive customer bases, were reportedly prepared to "absorb considerable geopolitical risk" to finalize the transaction. The acquisition is a long-term strategic move for Prada, focused more on revenue growth than cost-cutting.

Capri Holdings, which had once aimed to build a United States based luxury conglomerate to rival the likes of LVMH and Kering, fell short of that vision. The acquisition signals Prada’s ambition to solidify its position as a leading Italian luxury house.

With this move, Versace will join an expanding Prada Group portfolio that includes fashion brands Prada and Miu Miu, footwear labels Church’s, Car Shoe, and Luna Rossa, the America’s Cup sailing team Luna Rossa, and the heritage pastry brand Marchesi.

The agreed purchase price, which includes Versace’s debt, represents a significant markdown from the approximately USD 2.15 billion (including debt) that U.S.-based Capri, then known as Michael Kors, paid in 2018 when it acquired Versace from the Versace family and Blackstone.

The sale is expected to bring several benefits to Capri Holdings, including a stronger balance sheet, the ability to accelerate strategic investments in Michael Kors, and increased shareholder value.

While the global luxury fashion market has recently slowed, the Prada Group has seen notable success. In 2024, it reported revenues of USD 6.12 billion, a 17% increase over the previous year. This growth was fueled in part by Miu Miu, famous for its viral micro-miniskirts and satin ballet flats, which nearly doubled its profits, approaching USD 1.32 billion in sales.