Prada buys Versace in $1.4 billion cash deal on Gianni Versace's birth anniversary

Prada has acquired Versace in an all cash deal. (Picture Credit: X)

Italian luxury fashion house Prada has finally acquired Versace in a $1.375 billion cash deal. The deal materialised on the birthday of Versace founder Gianni Versace on December 2, 2025. For the uninitiated, the development was under works for the past 8 months and it was the regulatory approvals that was taking a lot of time.

The idea behind acquiring Versace has been to revive it, especially after its lackluster performance since the pandemic. Former Versace owner Capri Holdings announced that the sale proceeds will be used to bring down the debt. In fact, Capri Holdings was earlier in talks with Tapestry. However, that deal didn't work out over antitrust issues.

Donatella Versace remembered her brother and late founder of Versace in an Instagram post. She wrote, "Happy Birthday, Gianni. 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. 🕊️🤍"

Gianni died a tragic death on July 15, 1997, as he was reportedly murdered outside his Miami beach mansion.

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Take a look at her post:

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A post shared by Donatella Versace (@donatella_versace)

Who will be the oversee Versace's operation closely now?

Now that the acquisition is complete, Prada's heir Lorenzo Bertelli will oversee the next chapter of Versace as executive chairman. Additionally, he will also take on the role of group marketing director and sustainability chief. Bertelli had mentioned in one of his interviews that Prada has been keen on closing the deal with Versace for many years.

He was the one who strongly pushed for the deal. As per him, Versace was meeting the two conditions. A: It was not too risky financially B: It was worth it, given the brand ranks among the world's leaders in terms of awareness.

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Prada already has two main labels. One is its namesake brand called Prada and the other one is called 'Miu Miu', a fast-growing but smaller brand.