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

Will pick up 100% stake in a deal that is expected to close during the second quarter of fiscal 2021

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.