Italian luxury houses Prada and Versace announced they have merged after Prada purchased the company from Capri Holdings in a $1.375 billion deal. According to a CNN report, “Prada is seeking to expand, having defied a slowdown in luxury demand, while Versace has been operating at a loss in the last few quarters. The merger strengthens Italy’s hand in a luxury industry led by French conglomerates, the biggest being Louis Vuitton owner LVMH.” The merger comes after the recent announcement of Donatella Versace stepping down as Versace’s Chief Creative Officer.