US fashion group Michael Kors has agreed to buy Italian design house Versace, according to a report by Reuters.
Private equity group Blackstone bought a 20 per cent stake in Versace in 2014, with plans to list it on the market.
However, Blackstone is reported to have found the investment disappointing, and has abandoned plans for a float.
The remaining 80 per cent of the Italian luxury group is owned by the Versace family.
Sources have said an official announcement from Michael Kors and Versace is expected this week.
Last year, Michael Kors bought shoe designer Jimmy Choo in a £900m takeover. Ahead of the deal, Michael Kors had been struggling with declining sales.
Versace recently announced plans to stop using fur in its collections.
