Infosys NSE -1.75 % said it would acquire product design and development firm, Kaleidoscope Innovation for up to $42 million.
With this acquisition, the company aims to expand its engineering services portfolio and strengthen presence in medical devices, consumer and industrial markets across the US.
Kaleidoscope brings to Infosys a diverse talent pool with extensive knowledge of design and engineering, said the Indian IT services major in a press release.
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 firm's last three years' revenues stood at 9: $20.6 million, $15.5 million and $13.2 million, respectively in CY19, CY18 and CY17.
“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 consumerization in the post-COVID era. Our clients will benefit from the combination of Kaleidoscope’s strong upstream offerings of product innovation and design, and Infosys’ stack of product engineering, validation and commercialisation services at a global scale," said Ravi Kumar, President, Infosys.
Nitesh Bansal, Global Head of Engineering, Infosys, said device engineering for both the consumer and medical industries has been a critical success parameter for Infosys' clients and the addition of upstream concept design and human factors engineering, through this acquisition, not only provides us end to end capability, but also creates an engagement engine dedicated towards innovation and growth in this sector.
"Kaleidoscope has always valued the ability to enhance people’s lives and their outcomes through innovation. We feel Infosys shares these same values and will open new avenues for our client partners, and our staff, to pursue larger opportunities together," said Matt Kornau, CEO and co-founder, Kaleidoscope Innovation.
The acquisition is expected to close during the second quarter of fiscal 2021.
Sourced from The Economic Times