Rivals will soon become partners as Prada sewed up a deal to buy its competitor Versace.

Capri Holdings agreed to sell Versace to Prada for $1.375 billion.

Word of the deal was reported on Wednesday, but at the time still needed to be approved by the Prada family. That approval came Thursday morning.

“We aim to continue Versace’s legacy celebrating and re-interpreting its bold and timeless aesthetic,” Prada Chairman Patrizio Bertelli said.

“At the same time, we will provide it with a strong platform, reinforced by years of ongoing investments and rooted in longstanding relationships,” he added.

Prada is based in Milan and is controlled by designer Miuccia Prada and her husband, Bertelli.

“It’s a bold and ambitious move by Prada,” Robert Burke, founder of Robert Burke Associates, said. “The acquisition would position Prada to diversify its portfolio and compete on a larger global stage.”

The Prada Group will now own not only its namesake, and Versace, but also Miu Miu, Luna Rossa (the America’s Cup sailing team), Marchesi 1824, Car Shoe and Church’s.

Capri Holdings purchased Versace for $2.15 billion plus debt in 2018 from the Versace family and Blackstone. Capri Holdings used to be Michael Kors. It also owns Jimmy Choo.

Capri had planned to sell the company to the owner of Coach for $8.5 billion, but the deal fell through after the Federal Trade Commission said it would damage competition in the world of affordable luxury handbags.

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