Infosys Ltd on Thursday said it has entered a definitive agreement to acquire US-based product design and development firm, Kaleidoscope Innovation, for $42 million.
With this acquisition, the company said, it will be able to expand its engineering services portfolio, especially in medical devices, consumer and industrial markets across the US.
The acquisition is expected to close during the second quarter of fiscal 2021.
“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,” Ravi Kumar, President, Infosys, said in the statement.
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, reported moneycontrol.com.
“For Kaleidoscope, it allows us to scale quickly and bring expanded offerings in AI, analytics, and digital infrastructure to its clients,” the report quoted Matt Kornau, CEO and Co-Founder, Kaleidoscope Innovation, as saying.