Guidewire agrees to acquire hyperexponential for $1.7B in cash

Guidewire has signed a definitive agreement to acquire London-based hyperexponential for a base price of $1.7 billion in cash, with up to $400 million more in contingent consideration tied to recurring revenue targets. It will fund the deal with $1.0 billion of new term loan financing, committed by Bank of America and Citibank, and cash on hand. Closing is expected in the second quarter of Guidewire's fiscal 2027.

hyperexponential sells an agentic platform for commercial P&C underwriting, covering submission triage, risk assessment, pricing and portfolio steering. It supports underwriting decisions on more than $75 billion of annual commercial premium, for customers including Aviva, Allianz, Sompo, Beazley and Markel. It is already a Guidewire technology partner, and CEO and co-founder Amrit Santhirasenan joins with the team.

Guidewire expects the deal to add at least 650 basis points to fiscal 2027 ARR growth.

The read: the core-system vendor is buying the underwriting AI layer it used to partner for.