Prada Acquires Versace After Years of Negotiations: A New Italian Luxury Giant Is Born

The fashion industry has just witnessed one of its most impactful moments of the year: Prada has completed the acquisition of Versace in a deal valued at approximately $1.375–$1.4 billion. With this move, a new Italian luxury powerhouse emerges—one that fuses two seemingly opposite creative universes: Prada’s intellectual sophistication and Versace’s maximalist glamour.

A Historic Agreement

The purchase was finalized on December 2, 2025. With this acquisition, Versace—one of Italy’s most iconic fashion houses, known for its sensuality, visual power and bold aesthetics—officially becomes part of the Prada Group, which already includes Prada and Miu Miu.

The main goal of the conglomerate is to revitalize Versace, accelerate its international expansion, and strengthen its production system by integrating it into Prada’s own Italian manufacturing network.

Why This Acquisition Happened

In recent years, Versace faced financial losses and strategic challenges under its previous management. Despite its legacy and cultural weight, the brand needed a deep restructuring.

For Prada, on the other hand, this represents a strategic opportunity to:

• Enter a luxury segment different from its own.

• Diversify its portfolio with an iconic brand known for a more exuberant style.

• Compete directly with the major global conglomerates that dominate high-end fashion.

This purchase marks a defining moment for Italian luxury: two historic houses joining forces with the intention of creating a strong, competitive global powerhouse.

Changes in Creative Leadership

As part of the transition:

• Donatella Versace stepped down as Creative Director after nearly three decades leading the brand’s aesthetic direction.

• She was replaced by Dario Vitale, a former member of Miu Miu’s creative team.

• Donatella is not fully departing: she will remain as Brand Ambassador, preserving Versace’s emotional identity and artistic legacy.

Meanwhile, Lorenzo Bertelli, heir to the Prada empire, was appointed Executive Chairman of Versace, reflecting a plan for direct integration within the group.

What This Means for Global Fashion

This union is far more than a financial operation—it is a collision and fusion of creative DNA.

• Prada: known for its intellectual minimalism, subversive elegance, and modern vision of luxury.

• Versace: a global symbol of bold glamour, sensuality and dramatic aesthetics.

The combination of both codes could usher in a new era for Versace: increased stability, creative resources, structural innovation and a refreshed global positioning.

For Prada, the acquisition signifies a transition from being a powerful luxury brand to becoming a true competitor among conglomerates like LVMH and Kering.

The Future of the New Italian Empire

Analysts agree that this move could:

• Strengthen Italy’s luxury production

• Reposition Milan as a more competitive capital against Paris

• Open doors to collaborations, new branding strategies and international expansion

• Inspire other Italian houses to consolidate

One thing is certain: Prada didn’t just buy a brand—Prada acquired a cultural symbol.
And what comes next in Versace’s new era will shape the rhythm of global luxury in the years ahead.

Sources Consulted

Reuters
AP News
Business of Fashion
Harper’s Bazaar
ABC News
Washington Post
Infobae
Vogue
SwissInfo
FashionNetwork
Hola Magazine
Wikipedia (contextual and biographical information)

(The images used in this article were obtained from Google and belong to their respective authors.)