After a six-month approval waiting period, the Prada Group announced the acquisition of its major competitor, Versace. The deal, first rumored in April, has now been confirmed: the Group, which owns Prada, Miu Miu, Church’s, and even the historic Milanese bakery Pasticceria Marchesi, purchased Versace from Capri Holdings for €1.25 billion. Now, for the first time, the two leading Italian fashion labels are sisters under one roof.

Courtesy of Prada

The sale comes just after last season’s major creative director reshuffle, which began with Donatella Versace stepping down as chief creative officer and led to the appointment of Dario Vitale, former Miu Miu design director, in her place. With Dario Vitale’s new vision of Versace—his sophomore show in February—and Prada’s new acquisition, all eyes will be on what comes next for the house in the new year.

Donatella, who remains involved as Versace brand ambassador, celebrated the deal in an Instagram post, coinciding with the birthday of her late brother and Versace founder, Gianni Versace. “Today is your day and the day Versace joins the Prada family. I am thinking of the smile you would have had on your face,’’ she wrote, sharing a 1996 photograph of Gianni Versace alongside Miuccia Prada.