Shares of Wipro moved higher in early trade after the company announced a $375 million deal to acquire the IT services business of Singapore-based Olam Group.
The stock rose as much as 3.2 percent during the session and was trading about 1.9 percent higher by mid-morning, outperforming both the IT index and the broader market, which remained under pressure.
The transaction involves Wipro’s subsidiary acquiring 200 million shares of Mindsprint, Olam’s IT and digital services arm. The unit provides technology, cybersecurity, and digital services across sectors such as food and agribusiness, manufacturing, retail, and healthcare.
The deal is seen as a strategic move for Wipro at a time when growth in the IT services sector has been uneven. Analysts say the acquisition strengthens the company’s capabilities in domain-specific areas, particularly in the food and agribusiness segment, while also adding platform-led offerings.
More importantly, the transaction comes with a long-term revenue component. Olam has awarded Wipro an eight-year services contract with a committed annual spend of $100 million, translating into a total deal value expected to exceed $1 billion over the period.
That visibility appears to have driven investor interest.
Brokers noted that the deal structure, combining an acquisition with a committed services agreement, makes it more strategic than a conventional outsourcing contract. It not only brings in new capabilities but also secures a steady revenue stream, which is particularly valuable in the current demand environment.
The positive reaction also comes against the backdrop of a weak year for Wipro’s stock. Shares remain down over 24 percent so far this year, underperforming the broader IT index, which has also seen declines amid slowing global tech spending.
The deal suggests Wipro is looking to shift that narrative by focusing on targeted acquisitions and deeper client engagements, rather than relying solely on organic growth.
For now, the market response indicates cautious optimism. Investors appear to be viewing the move less as a one-off transaction and more as a step toward rebuilding visibility into growth in a challenging environment for IT services.
