Prada SpA has agreed to acquire Versace for $1.38 billion, solidifying its position as Italy’s leading fashion group. The deal, announced Thursday (April 10), is expected to be finalized in the second half of the year, according to both companies.

This move marks the biggest acquisition in Prada’s long history and returns the Versace brand to Italian ownership after being bought by Capri Holdings in 2018 for $1.8 billion. Reclaiming Versace is expected to strengthen Prada’s strategic standing against luxury giants like LVMH and Kering SA.

The agreement moved forward despite turbulence in global markets caused by the U.S. tariff policies under President Donald Trump. Prada had been in talks for months to acquire the iconic fashion house founded by Gianni Versace in the 1970s, known for its bold, eye-catching designs.

The acquisition not only gives Versace a renewed opportunity to reverse its fortunes—something Capri failed to achieve—but also reinforces the Italian identity of the Prada group, controlled by designer Miuccia Prada and her husband, Patrizio Bertelli.