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

Prada will buy rival fashion house Versace for $1.4 billion in a deal uniting the two biggest names in Italian luxury, the brands announced Thursday. The deal is part of a series of shakeups at Versace, where longtime creative leader Donatella Versace stepped aside last month.

Donatella Versace, who held the role of Versace’s chief creative officer for nearly 30 years, stepped down last month.