Michael Kors said the company will be renamed Capri Holdings once the acquisition is completed.
The Versace management team will continue to be led by its chief executive Jonathan Akeroyd.
Donatella Versace, who is currently the creative director and vice president of the Italian fashion house, will become a shareholder in Carpi Holdings as a result of the deal.
She said: “This is a very exciting moment for Versace. It has been more than 20 years since I took over the company along with my brother Santo and daughter Allegra.
“I am proud that Versace remains very strong in both fashion and modern culture. Versace is not only synonymous with its iconic and unmistakable style, but with being inclusive and embracing of diversity, as well as empowering people to express themselves.
“Santo, Allegra and I recognise that this next step will allow Versace to reach its full potential.
“We are all very excited to join a group led by John Idol, whom I have always admired as a visionary as well as a strong and passionate leader.
“We believe that being part of this group is essential to Versace’s long-term success. My passion has never been stronger. This is the perfect time for our company, which puts creativity and innovation at the core of all of its actions, to grow.”