Shares of Infosys Ltd fell over 2% on Friday on profit-booking after it entered into a definitive agreement to acquire Kaleidoscope Innovation in an all-cash consideration up to $42 million. Infosys stock has fallen after 2 days of consecutive gain
The second acquisition of the firm in Kaleidoscope Innovation, a full-spectrum product design, development and insights firm, is expected to close in Q2 FY21. Earlier in February, the IT firm had acquired Simplus, a Salesforce partner, for $250 million.
The company will be able to expand its engineering services portfolio, especially in medical devices, consumer and industrial markets across the US with this acquisition, it said.
The stock of the index heavyweight fell 2.12% to an intraday low of Rs 915.55 on BSE. Infosys stock opened at Rs 921 and also touched an intraday high of Rs 929.50.
Market capitalisation of the IT major stood at Rs 3,93,141 crore as of today's session. Infosys stock price is trading higher than 50, 100 and 200-day moving averages but lower than 5 and 20-day moving averages.
Infosys share price has fallen 1.27% in one week, 2.85% in one month.
"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 era," said Ravi Kumar, President, Infosys.
"The partnership with Infosys 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," said Matt Kornau, CEO and co-founder, Kaleidoscope Innovation.
Country's second-largest software exporter had reported 11.5% growth in consolidated net profit (after minority interest) at Rs 4,233 crore for the first quarter ended June 30, 2020, as against Rs 3,798 crore in the same period last year. Infosys reported revenue growth YoY at 8.5% to Rs 23,665 crore in Q1FY21 from Rs 21,803 crore in the corresponding period last fiscal.