Infosys acquires US-based product design and development firm, Kaleidoscope Innovation, for $42 million.
With this acquisition, the company will be able to expand its engineering services portfolio, especially in medical devices, consumer and industrial markets across the US, the company said in a statement.
The acquisition is expected to close in Q2 FY21.
This is the company’s second acquisition in the year and the amount includes earn-out payments, management incentives and bonuses. The company acquired Simplus, a Salesforce partner, in February for $250 million.
Kaleidoscope designs microsurgical instruments, devices used in minimally invasive surgery, drug delivery devices for ophthalmic therapies and user-centric wearables. It also offers usability testing in support of regulatory submissions, including the delivery mechanism for aortic stents, the statement said.
Ravi Kumar, President, Infosys, said in the statement, “This acquisition further strengthens our digital offerings at the intersection of new software technologies and medical devices -- a sector that is expected to witness significant investments and consumerisation in the post-COVID era.”
For Kaleidoscope, it allows us to scale quickly and bring expanded offerings in AI, analytics, and digital infrastructure to its clients, said Matt Kornau, CEO and Co-Founder, Kaleidoscope Innovation.
During Infosys' annual general meeting and recent press interaction, CEO Salil Parekh said the company is actively looking out for acquisitions in the area of data, analytics and cloud that would complement its offerings.
In July, Wipro made two acquisitions within weeks after its new CEO Thierry Delaporte took over. These include Brazil-based IVIA Servicos de Informatica and Belgium-based 4C, a Salesforce partner, for $79 million.
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