Capri may sell struggling Versace to Prada. That’s boosting Capri’s stock.

Capri Holdings Ltd.’s stock soared 6.7% 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 ($1.6 billion).

The Italian family-owned Prada

HK:1913 PRDSY has agreed to that price, Bloomberg reported, citing people familiar with the matter. Versace was founded by the late Gianni Versace in 1878 and is currently run by his sister Donatella.