Arushi AgarwalFor the second time in 2020, Infosys acquired a major company. The acquisition of this US-based company, Kaleidoscope Innovation happened for a total of $42 million. Earlier this year, in the month of February, Infosys had also acquired Simplus, a salesforce partner for $250 million.
This acquisition has been made in the hopes to expand the engineering services portfolio to the medical and industrial markets in the US as well. It is expected to bring a fresh talent pool with sizeable knowledge of design and engineering. The acquisitions will most probably close in Q2 Fy21.
The revenues for the last 3 years of the firm are as follows-
CY19: $20.6 million
CY18: $15.5 million
CY17: $13.2 million
Kaleidoscope is a company that basically designs instruments for the field of medicine. It designs microsurgical instruments that are used for minimally invasive surgery. It is also involved in designing drug delivery devices for ophthalmic therapies and user-centric wearables. Another service it offers is the testing of usability in support of regulatory submissions which also includes the delivery mechanism for aortic stents.
Infosys President, Ravi Kumar said, “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.” This acquisition will lead to creating a great partnership of innovative ideas from Kaleidoscope and product engineering, validation, and commercialization by Infosys on a global level.
Kaleidoscope will also receive some benefits from this deal such as bringing in expanded offerings in artificial intelligence, analytics, and digital infrastructure to the clients as said by Matt Kornau, CEO and Co-founder of Kaleidoscope Innovation. He also posted on twitter, “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.”
Another company that made 2 big acquisitions this year in July, was Wipro after the takeover by their new CEO Thierry Delaporte. Wipro acquired IVIA Servicos de Informatica (Brazil-based) and 4C (Belgium-based) Salesforce partners for $79 million.