The deal, confirmed on Tuesday, November 2, after all regulatory approvals were secured, places the famed Medusa-branded label alongside Prada’s existing portfolio, which includes Miu Miu.
The purchase marks a strategic expansion as Prada seeks to strengthen its position against luxury heavyweights such as LVMH, the French group behind Dior, Fendi, and Louis Vuitton.
Analysts say the move gives Prada a stronger foothold in the high-growth luxury market, particularly in the United States, Europe, and parts of Asia.
Capri Holdings, Versace’s former parent company, said the proceeds will be used to reduce its debt. Capri chief executive John D Idol noted that the sale would allow the company to focus on its remaining brands, including Michael Kors and Jimmy Choo.
He described the transaction as an essential step toward reinforcing the firm’s financial stability.
Versace has undergone major changes in recent years following slower sales and the departure of Donatella Versace, who stepped down in March after nearly three decades as creative chief.
She had taken over the brand in 1997 after the murder of her brother Gianni. Donatella was succeeded by Dario Vitale, formerly a design director at Miu Miu, Prada’s youth-driven label.
Prada’s leadership has expressed confidence in the brand’s long-term prospects. Earlier this year, Prada chief executive Andrea Guerra said Versace has huge potential, although she cautioned that its revival will require discipline and patience.
