It's Official: Michael Kors Acquires Versace in $2.12 Billion Deal

Update, 26/9: Following rumours, Michael Kors Holdings has officially bought Versace for $2.12 billion. In its acquisition of the iconic Italian fashion house, the Michael Kors Holdings fashion group will change its name to Capri Holdings.

"This is a very exciting moment for Versace,” Donatella Versace said in a statement, “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. 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. Santo, Allegra and I recognize that this next step will allow Versace to reach its full potential."

The Italian designer added, "We are all very excited to join a group led by John Idol, whom I have always admired as a visionary as well as a strong and passionate leader. We believe that being part of this group is essential to Versace’s long-term success. My passion has never been stronger. This is the perfect time for our company, which puts creativity and innovation at the core of all of its actions, to grow.”

The Versace family will become shareholders of Capri Holdings Limited, with Donatella keeping her role as creative director of the fashion house. Capri Holdings, formerly Michael Kors Holdings, now has three major fashion houses under its portfolio: Michael Kors Collection, Jimmy Choo, and Versace.

"The acquisition of Versace is an important milestone for our group...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," John D. Idol, CEO of Michael Kors Holdings Limited, said in a release.

He added, "Donatella’s iconic style is at the heart of the design aesthetic of Versace. She will continue to lead the company’s creative vision. I am thrilled to have the opportunity to work with Donatella on Versace’s next chapter of growth.”

Original post, 25/9: In a major fashion industry shakeup, Michael Kors is reportedly set to buy Versace in a two-billion-dollar deal. Though not officially confirmed, the news is rumored to be announced as early as this week.

According to Business of Fashion, US fashion group Michael Kors Holdings Ltd. is close to an agreement to buy Gianni Versace S.p.A, the private Italian fashion company under the creative reins of Donatella Versace. In the reported deal, the Versace family would continue to have a role in their company.

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Though Versace is a privately owned company, Blackstone Group LP, a US-based private equity group, bought a 20-percent stake in Versace back in 2014. It's unclear if the group would sell its stake to Michael Kors Holdings in the rumored deal.

If true, this would be Michael Kors' latest move to expand its portfolio of luxury brands. Just last year, the brand acquired luxury British shoe brand Jimmy Choo in a $1.2 billion deal. Of course, Kors and Versace make for an interesting pairing. While Versace is famous for its over-the-top glitz and signature Italian glamour, Kors is the antithesis of that aesthetic, with a focus on affordable luxury and all-American ready-to-wear collections.

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This article originally appeared on Harper's BAZAAR US.