Key facts
- Guidewire is acquiring Hyperexponential for a base price of $1.7 billion in cash.
- An additional $400 million is available as contingent consideration based on revenue targets.
- The acquisition is expected to close in the second quarter of fiscal 2027.
- Hyperexponential's software has supported underwriting decisions across over $75 billion in annual commercial P&C premium.
- Guidewire expects the deal to add at least 650 basis points to its fiscal 2027 ARR growth.
Insurance technology company Guidewire announced Tuesday it has agreed to acquire Hyperexponential, a provider of AI-native underwriting and pricing software for commercial property and casualty insurers, for $1.7 billion in cash. The deal, which includes up to an additional $400 million in contingent consideration tied to revenue targets, is expected to close in the second quarter of fiscal 2027. Guidewire plans to fund the acquisition with $1 billion in new term loans and cash on hand, securing binding debt commitments from Bank of America and Citibank. Centerview Partners advised Guidewire, while J.P. Morgan advised Hyperexponential. Hyperexponential, already a Guidewire PartnerConnect Technology Alliance Partner, has supported underwriting decisions for over $75 billion in annual commercial P&C premium globally. The acquisition aims to enhance Guidewire's position in agentic underwriting, where AI agents work alongside human professionals to assess risk and make pricing decisions.