Michael Kors has confirmed its acquisition of Italian fashion house Versace for £1.6 bn.
The US fashion company also said it will rename itself Capri Holdings upon the closing of the deal.
The enlarged Capri will comprise of three global fashion brands: Michael Kors, Versace, and Jimmy Choo.
Michael Kors chief executive and chairman John D Idol said that the company was committed to investing in Versace’s growth, with a goal to grow revenues to more than £1.5 bn.
“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,” he said.
Michael Kors acquired shoe brand Jimmy Choo last year in a deal worth £896m.
Donatella Versace, the brand’s artistic director and sister of founder Gianni Versace, will continue to lead the creative side of the business.
Versace boss Jonathan Akeroyd will also remain in place along with the rest of the brand's senior management.
Michael Kors also outlined plans to increase the number of Versace retail stores worldwide from 200 to 300 and push the share of revenues raised from accessories and footwear from 35 per cent to 60 per cent.