Michael Kors is getting an upgrade to its wardrobe — it announced Tuesday it's buying the luxury Italian fashion house Versace for more than $2 billion.
As part of the deal, Donatella Versace will stay on to oversee the creative vision of the label, which was founded by her late brother Gianni Versace in 1978.
Michael Kors — which will be renamed Capri Holdings Ltd. after the deal closes — has big plans for the European brand.
It wants to boost Versace's global revenue to $2 billion, build an additional 100 stores worldwide and expand the brand's accessories and footwear businesses.
Industry experts theorize the move will help give Michael Kors a one-up on competitors, like Louis Vuitton and Coach's parent companies.
Kors has been strategically aiming to boost its luxury appeal. It acquired high-end shoemaker Jimmy Choo for more than $1 billion last year.
Additional reporting from Newsy affiliate CNN.