On Thursday, Prada — in a move widely speculated for months — bought Versace for 1.25 billion euros (about $1.4 billion), from Capri Holdings. “We love the brand. We have a lot of ideas,” said Andrea Guerra,

The price Prada has agreed to pay is a big discount to the roughly $2.15 billion including debt that US-based Capri, then known as Michael Kors, paid for Versace in 2018 when it was sold by the Versace family and Blackstone.

On Thursday, in the biggest luxury deal of the year, Prada announced it was buying Versace for 1.25 billion euros ($1.38 billion) from Capri Holdings, a beleaguered New York group that at one point styled itself as the American answer to the great fashion groups of France.