It’s official. Michael Kors is buying Jimmy Choo for a cool US$1.2 billion.

According to Michael Kors Holdings, they plan to help the luxury shoe label diversify and become even more profitable by growing their luxury men’s footwear and breaking into the ‘fast-growing’ Asian market. The move is a strategic one for Kors, whose sales have been declining over recent quarters. The buy-out signals their intention to stay relevant and competitive in today’s market, and follows the precedent set by Coach in May, when the handbag retailer purchased Kate Spade.

Read a fashion editor’s thoughts on Coach buying Kate Spade.

The eponymous label was founded in 1996 by Jimmy Choo and Tamara Mellon, a former Vogue journalist, though Choo formally left his company in 2001. In no time at all it became a fast favourite of fashion (and real) royalty, from the late Princess Diana to Beyonce.

For more information about this breaking story see Bloomberg and BBC.