The deal is likely to close during the second quarter of fiscal 2021, subject to customary closing conditions.
Kaleidoscope is a US-based product design and development firm that operates in medical, consumer, and industrial markets. Infosys is planning to pay 42 million dollars for acquiring a 100 percent stake in the Cincinnati-headquartered company. The amount includes bonuses, earn-out, and management incentives, according to the exchange filing.
The acquisition is expected to close during the second quarter of 2021, subject to customary closing conditions.
According to the Bengaluru based firm, the acquisition demonstrates the company`s commitment to innovate for its clients, and by combining cutting edge technologies and experiences, it attempts to revolutionize treatment, patient care, diagnostics, and consumer health globally and making a meaningful impact on human lives.
The acquisition further strengthens the digital offerings of the company by the intersection of new software technologies and medical devices, which is a sector that is expected to see significant investment and consumerization in the post COVID era.
The combination of Kaleidoscope`s strong upstream offerings of product innovation and design along with the product engineering capabilities will lead to the validation and commercialization of services on a global scale.
According to Mr. Matt Kornau, who is the CEO and co-founder of Kaleidoscope innovation, the new partnership between Kaleidoscope and Infosys will help in scaling quickly and bringing expanded offerings in the field of Artificial Intelligence, analytics, and digital infrastructure to the clients.
Infosys is aiming to expand its engineering services portfolio and strengthen its presence in the consumer, industrial, and medical services market across the United States. Kaleidoscope shall provide Infosys with a diverse pool of talent with extensive knowledge in design and engineering.
Microsurgical instruments, devices used in minimally invasive surgery, drug delivery devices for ophthalmic therapies, and user-centric wearables are some of the products designed by Kaleidoscope. Infosys shall obtain end-to-end capabilities by the addition of upstream concept design and human factors engineering, which shall create an engagement engine which shall be dedicated to innovation and growth in the sector.
The firm`s revenue for CY19 stood at 20.6 million dollars, for CY18 15.5 million dollars, and 13.2 million dollars for CY17.