Fashion brand Michael Kors is acquiring Italian luxury design house Versace for $2.12 billion, it was announced on Tuesday.
The Milan-based line, founded by Gianni Versace in 1978, will join shoe brand Jimmy Choo under Michael Kors Holdings Limited, which will change its name to Capri Holdings Limited upon the deal's closing.
“This is a very exciting moment for Versace,” said Donatella Versace, who is currently the creative director, in the announcement. “It has been more than 20 years since I took over the company along with my brother Santo and daughter Allegra. I am proud that Versace remains very strong in both fashion and modern culture."
Donatella took over as head designer following her brother Gianni's death in 1997. The brand is known for its opulent, glamorous designs that are always in heavy rotation on celebs.
"Versace is not only synonymous with its iconic and unmistakable style, but with being inclusive and embracing of diversity, as well as empowering people to express themselves," Donatella said. "Santo, Allegra and I recognize that this next step will allow Versace to reach its full potential."
Donatella will continue as creative director while Versace's CEO Jonathan Akeroyd will lead management.
"With the full resources of our group, we believe that Versace will grow to over US$2.0 billion in revenues," said John D. Idol, Michael Kors Holdings Limited's Chairman and CEO. "We believe that the strength of the Michael Kors and Jimmy Choo brands, and the acquisition of Versace, position us to deliver multiple years of revenue and earnings growth."
See Kim Kardashian West rock a sexy, yellow Versace dress in Miami: