The US fashion group has agreed to buy the Italian firm in a deal worth about €1.7bn ($2bn, £1.5bn), Reuters reported. The Versace family still owns 80% of the company. Four years ago it sold a 20% stake to US private equity group Blackstone.
Last year, Michael Kors bought Jimmy Choo, the luxury shoemaker founded in London, for almost £900m.
Donatella Versace, the firm’s artistic director and vice-president, has reportedly called a staff meeting in Milan for Tuesday, Corriere della Sera reported. Versace reported sales of €686m in 2016. Chief executive Jonathan Akeroyd said earlier this year that annual turnover was soon expected to exceed €1bn.