Prada announced this week that it had successfully acquired Versace, bringing two of Italy’s most iconic luxury fashion houses under one roof.

The $1.4 billion acquisition falls well below the roughly $2 billion that Versace’s now-former parent company, Capri Holdings, paid for the brand nearly a decade ago.

The sale widens Prada’s stable of designer labels, which includes Miu Miu, as the company seeks to cement its position against major competitors like the French conglomerate LVMH, owner of Louis Vuitton and Fendi.

Versace’s longtime creative force, Donatella Versace, stepped down in March after nearly 30 years at the helm of the fashion house, renowned for its opulent aesthetic and iconic Medusa logo.

She assumed leadership in 1997 following the murder of her brother, Gianni. Donatella was succeeded by Dario Vitale, formerly a design director at Miu Miu, Prada’s youth-focused luxury brand.

The sale comes at a roughly $600 million loss for Capri Holdings, following a period of disappointing sales.

Under Capri’s ownership, Versace shifted away from its signature, bold designs toward a more minimalist direction, even as the company raised prices.

Prada confirmed on Tuesday that it completed the acquisition after receiving regulatory approval.

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