Versace, the iconic Italian fashion house founded by Gianni Versace 40 years ago, has reportedly been sold to U.S. clothing and handbag brand Michael Kors for 1.67 billion euros. According to Italian media reports the company's vice-president, Donatella Versace, will announce the deal this week.

The sale of Versace, which is known for its Medusa head logo, was sealed on Monday, three sources familiar with the talks confirmed to Reuters. Versace and Michael Kors declined to comment. Michael Kors has bought several fashion labels recently, including the London shoemaker Jimmy Choo for just over a billion euros.