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.

Capri Holdings, which also owns Jimmy Choo and Michael Kors, says that it will use the cash from the deal to invest in its other brands.

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