In a landmark move reshaping the global luxury landscape, Italian fashion powerhouse Prada has officially completed the acquisition of its iconic rival, Versace. The deal, valued at approximately 1.3 billion euros ($1.5 billion), was finalised on Tuesday, December 2, 2025, cementing a union that Prada has pursued for years.
A Deal Forged from a Failed Merger
The path to this acquisition opened after a previous agreement fell apart. Capri Holdings, the US-based parent company of Versace, had initially planned to sell itself to Tapestry, the owner of Coach and Kate Spade. However, that deal was scrapped following a significant challenge by antitrust regulators. This regulatory block created the opportunity for Prada to step in and secure Versace, signing a definitive agreement in April 2025.
Prada's leadership confirmed that the desire to bring Versace into its fold was not a sudden impulse. Lorenzo Bertelli, son of Prada owners Miuccia Prada and Patrizio Bertelli, revealed that discussions had been ongoing for several years. "There had already been contacts during the COVID period, there were talks even before Capri's sale to Tapestry," Bertelli stated. "When that deal fell through over antitrust issues, we came back and tried to speed things up. It was something that had been in the works for a long time."
A New Chapter for the House of Versace
The closing of this monumental deal carried profound emotional weight for the Versace family. It coincided with the birthday of the brand's founder, the late Gianni Versace, who established the label in Milan in 1978. His sister, Donatella Versace, who has been the creative heart of the brand for decades, marked the occasion with a poignant social media post. "Today is your day and the day Versace joins the Prada family. I am thinking of the smile you would have had on your face. I miss you, always," she wrote on Instagram. Gianni Versace was tragically shot dead in Miami in 1997.
This acquisition also follows a major leadership change at Versace. In March 2025, just weeks before the Prada deal was announced, Donatella Versace stepped down from her role as creative chief after nearly thirty years. She has been succeeded by Dario Vitale, the former design director at Prada's subsidiary brand, Miu Miu.
Strategic Shift and Future Integration
The acquisition represents a sharp strategic pivot for the Prada Group. Versace, renowned for its bold, glamorous, and theatrical aesthetic, will now sit alongside the group's two main labels: the flagship Prada brand and the younger, fast-growing Miu Miu. Lorenzo Bertelli, who strongly advocated for the purchase, will assume the role of executive chairman of Versace once the integration process is complete.
Bertelli outlined that Versace met two critical criteria for the acquisition: it presented a manageable financial risk and offered immense value due to its position as one of the world's most recognised luxury brands. The move underscores the accelerating trend of consolidation within the high-end fashion industry, as major groups seek to bolster their portfolios and market reach.
With the deal now closed, the global fashion world watches closely to see how Prada will integrate the distinct identity of Versace into its empire, setting the stage for a new era in Italian luxury.
