After months of negotiations and speculation, Versace has officially been acquired by Italian luxury fashion house Prada Group. The €1.25 billion deal was finalized, marking the beginning of a new chapter in Italian fashion history.

A message of gratitude was expressed on social media by Donatella Versace, former Chief Creative Officer of Versace, to the Prada family.

"I am absolutely delighted for Versace to become part of the Prada family. Gianni and I have always had a huge admiration for Miuccia, Patrizio and their family. I am honoured to have the brand in the hands of such a trusted Italian family business and I am ready to support this new era for the brand in any way that I can," she wrote.

As previously reported, the acquisition had been anticipated, with the deal initially estimated at around €1.5 billion ($1.6 billion).

The move was viewed as part of a broader strategy by Prada to expand its luxury portfolio and strengthen its competitive standing within the global fashion industry. The decision was made following Capri Holdings' strategic shift toward focusing on the revitalization of its Michael Kors brand and divesting its higher-end labels, including Versace and Jimmy Choo.

It was confirmed by Miuccia Prada, head of Prada's creative direction, that strong interest in acquiring Versace had been expressed by other fashion houses, although specific names were not disclosed. According to earlier reports, early access to Versace’s financial records had been granted to Prada, giving it a competitive edge during the bidding process.

Versace had been previously acquired by Capri Holdings in 2018 for €1.83 billion, including debt.