Infosys has signed a definitive agreement to acquire product design and development company Kaleidoscope Innovation, which specialises in medical, consumer and industrial markets.

Kaleidoscope has a deep understanding of clinical environments and strong product development capabilities across various domains.

The company designs microsurgical instruments used in minimally invasive surgery, drug delivery devices for ophthalmic therapies and user-centric wearables. It also provides usability testing for regulatory submissions, including the delivery mechanism for aortic stents.

The move will enable the India-based IT consulting company to strengthen its presence in the medical device, consumer and industrial markets across the US.

The company expects the acquisition to enable it to bring together cutting-edge technologies and experience to transform patient care, treatment, diagnostics and consumer health globally.

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 consumerisation in the post-Covid-19 era.

“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.”

According to reports, in a regulatory filing, Infosys said that the cost of acquisition is up to $42m, including earn-out and management incentives.

Kaleidoscope Innovation CEO and co-founder Matt Kornau said: “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. We feel Infosys shares these same values and will open new avenues for our client partners and our staff to pursue larger opportunities together.”

The acquisition is expected to close during the second quarter of the fiscal year 2021, subject to customary closing conditions.