Michael Kors agrees to buy Versace

EUTERS/Alessandro Bianchi

Models present a creation from Versace Autumn/Winter 2014 collection during Milan Fashion Week February 21, 2014.

Michael Kors has agreed to buy the Italian fashion house Versace in a deal that has an enterprise value of 1.83 billion euros ($2.12 billion).

"We are excited to have Versace as part of our family of luxury brands, and we are committed to investing in its growth," Michael Kors Chairman and CEO John Idol said in the press release.

"With the full resources of our group, we believe that Versace will grow to over US$2.0 billion in revenues. 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."

Alongside the announcement of the deal, Michael Kors announced that it was changing its name to Capri Holdings.

This story is developing...