InvestorQ : What are the benefits you see in Infosys acquiring Kaleidoscope Innovation?
Arusha Ray made post

What are the benefits you see in Infosys acquiring Kaleidoscope Innovation?

Answer
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4 weeks ago


Infosys has acquired US-based Kaleidoscope Innovation, a product design firm, for a consideration of $42 million in cash. This will allow Infosys to expand its engineering services franchise to cater to the medical and industrial market across the US.

This is Infy’s second acquisition this year after it acquired Salesforce partner, SImplus, for a much larger $250 million. Kaleidoscope specializes in design of microsurgical instruments in minimally invasive surgery.

It is one more addition to Infy’s digital offerings in the medical devices arena, which is emerging as the big action area for software companies. The sector is expected to witness significant investments growth in the post pandemic scenario.

For Kaleidoscope, this offers the capacity to rapidly scale up their AI offerings and take them to market thanks to a much stronger balance sheet of Infosys. Other Indian players like Wipro have also been actively building up this franchise.