Infosys Limited, an Indian multinational corporation that provides business consulting, information technology and outsourcing services, is all set to acquire US based product design and engineering firm Kaleidoscope Innovation for $ 42 million (Rs 308 crore).

Infosys reported flat growth in Q1, FY21, Q2 is expected to bring a notable improvement coupled with strong deal flow. This is the second acquisition of Infosys after it acquired Simplus, a Salesforce consulting and advisory firm for $250 million.

The acquisition of Kaleidoscope Innovation is expected to strengthen the firm's health-tech vertical which witnessed a robust growth amidst the COVID pandemic. Kaleidoscope designs microsurgical instruments, devices used in minimally invasive surgery, drug delivery devices for ophthalmic therapies and user-centric wearables.

Infosys said that the acquisition demonstrates the company’s commitment to innovate for its clients, and make a meaningful impact on human lives by combining cutting-edge technologies and experiences to revolutionize patient care, treatment, diagnostics and consumer health across the world.

“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.

"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. We are excited to welcome Kaleidoscope Innovation and its leadership team into the Infosys family, as part of Infosys Engineering Services portfolio,” Ravi Kumar, President, Infosys, said in a statement.

The acquisition is said to close in the second quarter of FY21, subject to customary closing conditions. With the onset of pandemic, the valuations of smaller, mid-size firms have plummeted with large companies eyeing acquisitions to consolidate their presence in niche markets.