Two giants of Italian fashion are about to become one. In what many are calling the biggest fashion deal of the decade, Prada has agreed to acquire Versace in a €1.25 billion (roughly $1.38 billion) takeover. The deal, finalized in April 2025, brings Versace back under full Italian ownership after spending years under U.S.-based Capri Holdings.
Both brands are known for their bold presence on the global runway. While Prada is celebrated for its minimalist sophistication, Versace is known for its bold, expressive aesthetic. Both brands will continue to operate under their individual identities but will now benefit from shared operational resources, enhanced global reach, and consolidated market strength.
Prada plans to leave Versace’s iconic legacy intact but with a fresh twist. Donatella Versace will step down as creative lead but stay involved as a brand ambassador. Taking the creative reins is Dario Vitale, formerly of Miu Miu, signaling a new creative direction for the house.
The acquisition isn’t just about brand power. Financially, it’s a big play. Prada anticipates a 13% increase in annual revenue following the merger. The acquisition is funded through €1.5 billion in new debt, a bold move supported by Prada’s strong 2024 performance, largely driven by the success of Miu Miu.
This acquisition is more than a financial transaction; it represents a reshaping of the Italian luxury landscape. By combining tradition, innovation, and international influence, the Prada–Versace union positions Italy at the forefront of the evolving global fashion scene.
