Guidewire has entered into a definitive agreement to acquire hyperexponential for a base purchase price of $1.7 billion in cash, with up to an additional $400 million of contingent consideration tied to specified recurring revenue targets. The potential total consideration is therefore approximately $2.1 billion.
London-based hyperexponential develops AI-native underwriting and pricing software for commercial property and casualty insurers. The company is already a Guidewire PartnerConnect Technology Alliance Partner.
Hyperexponential’s platform has supported underwriting decisions covering more than $75 billion in annual commercial P&C premium for insurers, reinsurers, and managing general agents.
Its customers include Aviva, Allianz, Sompo, Beazley, Markel, HDI, Cincinnati Financial, Convex, and Bowhead.
Guidewire plans to combine the platform with its broader insurance technology ecosystem to expand what it describes as agentic underwriting. Under that model, AI agents would work alongside underwriters and actuaries to perform tasks such as submission triage, risk assessment, pricing, rating, and portfolio management.
Guidewire expects the acquisition to contribute at least 650 basis points to fiscal 2027 annual recurring revenue growth on an inorganic basis.
Beginning in fiscal 2028, the company expects hyperexponential to contribute at least 150 basis points to durable organic ARR growth.
Guidewire plans to fund the acquisition through $1 billion of new term loan financing and existing cash. Bank of America and Citibank have provided a binding debt commitment for the term loan.
The transaction is expected to close in the second quarter of Guidewire’s fiscal 2027.
Centerview Partners is serving as exclusive financial advisor to Guidewire, with Latham & Watkins providing legal counsel. J.P. Morgan is exclusive financial advisor to hyperexponential, while Wilson Sonsini Goodrich & Rosati is serving as legal counsel.
Guidewire serves more than 570 insurers across 44 countries and has supported more than 1,700 implementation projects.
KEY QUOTES:
“We’re delighted to welcome Amrit Santhirasenan and the team at hyperexponential to Guidewire. There isn’t another company in the world whose passion for insurance, technical ambition, and vision for the potential of AI in insurance align so closely with our own.”
Mike Rosenbaum, CEO Of Guidewire
“We founded hyperexponential on the conviction that underwriting judgment is the highest-leverage work insurers do. Guidewire is the most trusted name in P&C insurance technology, with deep expertise in managing and safeguarding the policy and risk information insurers rely on throughout the insurance lifecycle.”
Amrit Santhirasenan, CEO And Co-Founder Of Hyperexponential
