A report said Prada and Capri Holdings had agreed a 1.5 billion euro price tag for Versace, sending stock in both companies higher.

Capri Holdings Ltd.’s stock soared 8.9% early Monday, after a report that the company is close to selling its Versace brand to Italian fashion company Prada SpA in a deal valued at 1.5 billion euros.

Prada is finalizing an agreement to acquire Versace from Capri Holdings for approximately 1.5 billion ($1.6 billion). This acquisition would unite two of Italys most iconic luxury fashion brands, bringing Versace