By Elisa Anzolin, Abigail Summerville and Amy-Jo Crowley MILAN (Reuters) -Prada struck a $1.38 billion deal to buy smaller rival Versace from Capri Holdings on Thursday in a move that unites two of the biggest names in Italian fashion and offers the prospect of enhanced revenues.

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 one of the most recognizable names in Italian fashion at 1.

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