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Guidewire agrees to buy Hyperexponential for $1.7 billion

Published

Guidewire, the insurance software company, will pay $1.7 billion in cash for London-based Hyperexponential, plus up to $400 million if recurring revenue targets are met. It announced the deal at its Connections conference in Las Vegas on Tuesday.

Hyperexponential makes AI-based underwriting and pricing software for commercial property and casualty insurers. Guidewire said the deal will let it lead in agentic underwriting, where AI agents work alongside underwriters and actuaries to assess, price and decide on risk.

Guidewire will fund $1 billion of the deal with a new term loan and cash on hand. One report said Bank of America and Citibank have given binding debt commitments for the loan. The $1.7 billion base price is subject to adjustments.

Guidewire expects the deal to close in the second quarter of its fiscal 2027. It said the deal should add at least 650 basis points to fiscal 2027 annual recurring revenue growth on an inorganic basis. From fiscal 2028, it said, the deal should add at least 150 basis points to durable organic growth.

Guidewire also said the deal will have no effect on its earlier guidance for the first quarter of fiscal 2027.

Key facts

Who
Guidewire (acquirer); Hyperexponential (company being acquired); hyperexponential (hx) (target company; provides AI underwriting and pricing platform); Bank of America, N.A. (reported lender with binding debt commitment for the term loan)
What
Guidewire is acquiring Hyperexponential for $1.7 billion in cash, with the deal expected to close sometime next year. The stated aim is to bring AI agents to work alongside humans to underwrite, analyze and price decisions.
When
27 October 2026
Where
London, Las Vegas
Status
Reported

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