American handbag brand Coach is set to buy Kate Spade for a cool $2.4 billion.

The two brands are quite similar, as they both produce leather goods with a fun quirky element. With Kate Spade, Coach seeks to solidify its hold on the millennial market: 60% of Kate Spade’s customers are millennials.

Coach CEO Victor Luis has said of the purchase:

“The acquisition of Kate Spade is an important step in Coach’s evolution as a customer-focused, multi-brand organization, the combination enhances our position in the attractive global premium handbag and accessories, footwear and outerwear categories.”

With Selena Gomez closely aligned with the brand and the new addition of Kate Spade, Coach seems to be catering to exactly what millennials crave.