Infosys to acquire US-based firm Kaleidoscope Innovation for $42 million

Topics IT services | Infosys  | acquisition

The acquisition is expected to close during the second quarter of fiscal 2021, subject to customary closing conditions.
IT services firm Infosys is set to acquire Kaleidoscope Innovation, a product design and development firm that operates in medical, consumer and industrial markets. 

Infosys will pay $42 million for acquiring 100 per cent stake in the Cincinnati-headquartered company and the amount includes earn-out, management incentives and bonuses, according to the exchange filing. The acquisition is expected to close during the second quarter of fiscal 2021, subject to customary closing conditions.

The Bengaluru-based firm said the acquisition demonstrates the company's commitment to innovate for its clients, and make a meaningful impact on human lives by combining cutting-edge technologies and experiences to revolutionise patient care, treatment, diagnostics and consumer health globally.

“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," said Ravi Kumar, President, Infosys. "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.”

“We are enthusiastic about our exciting new partnership with Infosys. It allows us to scale quickly and bring expanded offerings in AI, Analytics, and Digital Infrastructure to our clients. Kaleidoscope has always valued the ability to enhance people’s lives and their outcomes through innovation,” said Matt Kornau, CEO & co-founder at Kaleidoscope Innovation.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel