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Infosys Acquires American Medical Devices Maker Kaleidoscope Innovation

India’s IT services giant Infosys has acquired US medical devices maker Kaleidoscope Innovation in an apparent bid to tap into the digital boom in the American healthcare sector.

The Bangalore, India-based IT consultant will pay US$42 million for the purchase, which analysts say is primarily aimed at gaining easy access to deep-pocketed clients in the pharmaceutical and healthcare sectors.

Ohio-based Kaleidoscope offers both consultancy-style and onsite services, with its chief offering being “product design research” engineering.

“Device engineering for both the consumer and medical industries has been a critical success parameter,” says Nitesh Bansal, global head of engineering at Infosys, in a statement.

“The addition of upstream concept design and human factors engineering, through this acquisition not only provides us with end to end capability but also creates an engagement engine dedicated towards innovation and growth in this sector.”

This is Infosys’ second acquisition in the United States this year after purchasing Outbox Systems Inc for US$250 million earlier in February.

Among its offerings is a service that will conduct usability testing for healthcare companies seeking regulatory approval for their new products. This is precisely why analysts say Kaleidoscope may serve as a vehicle for Infosys to gain access to wide-ranging clients in the US healthcare industry.

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Armed with labs, 3D design environments, and customer experience centers, Kaleidoscope designs microsurgical instruments, devices used in minimally invasive surgery, drug delivery devices for ophthalmic therapies, and user-centric wearables.

Narayan Ammachchi

News Editor for Nearshore Americas, Narayan Ammachchi is a career journalist with a decade of experience in politics and international business. He works out of his base in the Indian Silicon City of Bangalore.

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