Wipro to buy select contracts from California IT firm Alpha Net for $71 million to enhance AI, consulting services

Wipro Ltd will acquire certain contracts from a California IT company for $71 million, taking its total acquisition spend to almost half a billion dollars in the first month of the financial year as it pursues growth in the uncertain macroeconomic environment.

The nation’s fourth-largest technology services firm said Wednesday it will receive certain contracts from Alpha Net Group, which specializes in enterprise software development, data engineering and managed services. Those contracts brought Santa Clara-based Alpha Net $37.3 million in revenue last calendar year.

“The business acquisition will provide Wipro with access to certain key customers, customer contracts and related workforce, which will augment Wipro’s existing AI-enabled and consulting-driven application services capabilities, thereby helping to fuel new growth opportunities,” Wipro said in a filing to stock exchanges.

The acquisition is expected to be completed by June. While Wipro is expected to pay up to $70.8 million for these contracts, a portion of the amount will be retained and paid only after Alpha Net meets certain performance targets and conditions.

This is Wipro’s second acquisition in less than a few weeks. On April 6, Wipro acquired Mindsprint, the IT arm of Singapore-based food company Olam Group, for $375 million. He also won a IT transformation deal from the same customer.

Both acquisitions took Wipro’s total acquisition spend in the first month of the financial year to $446 million; That’s more than it spent in the previous fiscal year, when it acquired Harman Digital Transformation Services (DTS) for $375 million in August.

Wipro is expected to generate annual revenue of at least $173.3 million from these two companies in the current financial year; of which $37.3 million comes from Alpha Net’s customers and $136 million from Mindsprint. The incremental revenue is equivalent to 1.65% of Wipro’s annual revenue of $10.5 billion in FY25. The company is scheduled to announce FY26 results on April 16.

revenue decline

Both acquisitions come as the company looks at the possibility of a third full-year revenue decline. In January, company management expected fourth-quarter revenue to be between $2.64 billion and $2.69 billion; This indicates a decline in full-year revenue at the lower end of the range.

Macroeconomic uncertainties fueled by the West Asian war could further dampen the growth of the country’s IT services companies as customers may pause spending on large IT contracts.

Sushovon Nayak, chief IT analyst at Anand Rathi Institutional Equities, said Alpha Net services will “augment Wipro’s existing AI-enabled and consulting-driven application services capabilities by focusing on high-tech (16% of Wipro’s revenue) and consumer (18.2%) verticals.”

It expects Wipro’s acquisitions of Alpha Net, Mindsprint and Harman DTS to contribute 320 basis points (3.2%). IT services revenue growth in the current fiscal year.

But a second expert said the move was aimed at “repairing momentum” rather than buying growth.

“It’s a pragmatic move to close gaps in vertical depth and accelerate near-term revenue, but it doesn’t yet constitute a full pivot to inorganic-focused growth. The real test is whether Wipro can transform these assets into scalable, AI-powered offerings rather than merely absorbing revenue,” said Phil Fersht, CEO of HFS Research.

buying spree

Wipro’s focus may be on smaller acquisitions in the future.

“They (Wipro) will likely pursue more acquisitions but expect them to remain disciplined and selective. Wipro does not have the balance sheet appetite or integration track record to go on a major acquisition spree, so the focus will be on smaller, industry-strengthening talent-led deals.” IP (intellectual property)data assets and AI application,” added Fersht.

Wipro isn’t the only IT outsourcing provider on a spending spree.

On March 26, Infosys Ltd said it plans to acquire US technology services companies Optimum Healthcare IT and Stratus for a total of $560 million, taking its acquisition spend to $808 million in the fiscal, an all-time high.

Mint On December 29, 2025, the nation’s 10 largest IT services companies reportedly embarked on their largest shopping spree since the turn of the century, announcing $4.3 billion in acquisitions in FY26.

Wipro, under chief executive and managing director Srini Pallia, is considering acquisitions to turn around the company’s fortunes. A challenging task awaits Pallia, who takes over in the summer of 2025.

But for now, investors have taken it positively, with shares up 3% as of 12:48 a.m. Wednesday.