Wipro Acquires Select Contracts from California-Based IT Firm Alpha Net for $71 Million

Wipro Continues Acquisition Spree with $71 Million Deal

Wipro Ltd, the country's fourth-largest tech services firm, has announced plans to acquire certain contracts from Alpha Net Group, a California-based IT company specializing in enterprise software development, data engineering, and managed services. The acquisition, valued at $71 million, is expected to be completed by June.

The contracts, which fetched Alpha Net $37.3 million in revenue last calendar year, will enable Wipro's access to key clientele, their customer contracts, and related workforce. This move will augment Wipro's existing AI-powered and consulting-led application services capabilities, driving new growth opportunities. The acquisition is part of Wipro's efforts to expand its presence in the uncertain macroeconomic environment.

Wipro's total acquisition spending in the first month of the fiscal year has reached almost half a billion dollars, with the company acquiring select contracts from Mindsprint, the IT arm of Singapore-based food company Olam Group, for $375 million. This is Wipro's second acquisition in less than two weeks, bringing its total acquisition spending to $446 million. In comparison, the company spent $375 million on Harman Digital Transformation Services (DTS) in August of the previous fiscal year.

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According to estimates, Wipro is expected to generate at least $173.3 million in annual revenue from these two companies in the current fiscal year – $37.3 million from Alpha Net's clients and $136 million from Mindsprint. This incremental revenue is equivalent to 1.65% of Wipro's annual revenue of $10.5 billion in FY25.

The acquisition comes as Wipro faces the possibility of a third full-year revenue decline. The company's management had expected fourth-quarter revenue of $2.64 billion-$2.69 billion, implying a full-year revenue decline at the lower end of the range. Macroeconomic uncertainties, fueled by the West Asia war, may further dampen growth for the country's IT services companies.

However, analysts are optimistic about Wipro's acquisition spree. Sushovon Nayak, lead IT analyst at Anand Rathi Institutional Equities, expects Wipro's Alpha Net, Mindsprint, and Harman DTS acquisitions to contribute 320 basis points (3.2%) to its IT services revenue growth in the current fiscal year. Phil Fersht, chief executive of HFS Research, believes that Wipro's focus might shift to smaller, capability-led deals that strengthen industry IP, data assets, and AI execution.

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Wipro's acquisition spree is not unique in the industry. Infosys Ltd has also announced plans to buy US tech services companies Optimum Healthcare IT and Stratus for a total of $560 million, taking its acquisition spending in a fiscal to an all-time high of $808 million. The country's 10 largest IT services companies have embarked on their largest shopping spree since the turn of the century, having announced $4.3 billion in acquisitions in FY26.

Shares of Wipro rose 3% as of 12:48 pm on Wednesday, with investors giving thumbs up to the company's acquisition plans.