The Prada Group announced a deal Thursday to buy crosstown Milan fashion rival Versace from the U.S. luxury group Capri Holdings under terms that values

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.

MILAN (Reuters) -Prada struck a deal on Thursday to buy smaller rival Versace from Capri Holdings for $1.375 billion, which includes its debt, in a move that unites two of the biggest names in Italian fashion.