In a major shake-up for luxury fashion, the Prada Group has acquired Versace from Capri Holdings in a deal worth €1.25 billion (around $1.38 billion). The acquisition is expected to finalize later in 2025 and marks a powerful unification of two Italian fashion giants.

This move could reshape the global fashion landscape, especially as French powerhouses like LVMH and Kering have long dominated the luxury space. Prada aims to preserve Versace’s creative identity while streamlining operations across its fashion empire. According to early reports, Versace’s employees and creative teams will remain in place, signaling stability during this transition.

Is this a good thing? For now, yes. Prada’s backing could breathe new life into Versace, offering greater financial stability and strategic direction something the brand has occasionally struggled with. However, the industry will be watching closely to ensure that Versace doesn’t lose its bold, flamboyant DNA in the process.

One thing’s certain, this is a big moment for Italian fashion, and it might just tip the scales back in Italy’s favour.