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In an effort to reach a younger demographic, Coach has purchased Kate Spade for a staggering $2.4 billion. USA Today reports that the Kate Spade brand will remain intact and will keep their stores in place, and that the merger was enacted because of the millennial consumer base that Kate Spade has. The identity of the brand and their marketing efforts will also stay in place. Coach’s CEO Victor Luis said in a conference call that Kate Spade “is a strong brand with a clear and consistent positioning, with leadership in the attributes of fashionable, fun and feminine, and a growing share of Millennials.”

The deal comes after Coach partnered with Selena Gomez at the end of February, and officially made her the new face of the brand. (See: Younger audience.) We can only wonder what Coach’s next move will be.

Read original article from Marie Claire.