Key Points:
Prada Group has acquired Versace for approximately $1.37 billion.
The deal was finalized on Gianni Versace’s birth anniversary.
The deal aims to revitalize Versace, which struggled under Capri Holdings due to pandemic-related financial setbacks.
The Prada Group has officially announced its acquisition of the iconic Italian fashion house Versace founded by the late fashion mogul Gianni Versace—on December 2, 2025.
The Prada-Versace deal had been in the works for nearly eight months, with ongoing discussions around a potential takeover. Reportedly valued at $1.37 billion, the acquisition was finalized on the occasion of Gianni Versace’s birth anniversary.
The merger of two of the most influential names in global fashion has sparked a wave of excitement across the fashion world, with prominent figures including Donatella Versace sharing overwhelmingly positive reactions.
As per the reports, the whooping billion dollar deal was caused by the recent underwhelming performance of the luxury fashion brand since the global pandemic shut down the world. The highly anticipated deal was followed after Versace’s performance tanked under the US based Capri holdings.
The move by the luxury clothing and accessories giant aims to reshape Versace’s performance. Capri Holdings, the multinational fashion group that owns brands such as Michael Kors and Jimmy Choo, stated that the acquisition will help Versace reduce the debts it amassed during the pandemic.
Prada confirmed the news in a brief statement, announcing that it has officially acquired the legendary fashion house with a rich, decades-long history.
Italian fashion designer and Gianni Versace’s sister, Donatella Versace, took to her Instagram account to express her excitement over the Prada–Versace acquisition. In her caption, she addressed her late brother, writing, “Today is your day and the day Versace joins the Prada family.” The post also featured a retro photograph of Gianni Versace with Miuccia Prada, the Italian billionaire fashion tycoon and founder of Prada’s sister label, Miu Miu.
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The Prada–Versace deal is being hailed as a new chapter for the fashion world and a gateway to future collaborations. The acquisition will be overseen by Lorenzo Bertelli as the Executive Chairman of Versace. He will also continue to serve as the brand’s Director and Chief Sustainability Officer.
However, this is not Prada’s first experience in acquiring other fashion brands. The Prada Group previously pursued a similar strategy in 1999, inspired by French luxury giants LVMH and Kering, which expanded rapidly in the 1990s and 2000s by purchasing major fashion houses. But Prada’s attempt to build its own luxury empire by acquiring majority stakes in Helmut Lang and Jil Sander did not go as planned and ultimately ended in failure.
According to Bertelli, the acquisition of Versace was a profitable move. He reportedly supported the decision based on two key criteria: that it was not too financially risky, and that ‘it was worth it’ because Versace is a globally recognized name.
Earlier this year, in March, before the announcement, Donatella Versace stepped down as Creative Chief of Versace after nearly three decades in the role. The mantle was then passed to fashion designer Dario Vitale.
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