Guidewire, the core-systems vendor for property and casualty insurers, has signed a definitive agreement to buy hyperexponential, a London-based software firm that Guidewire's release describes as a provider of "AI-native" underwriting and pricing software for commercial lines. Guidewire will pay $1.7bn in cash, subject to adjustments, and up to a further $400m if hyperexponential meets specified recurring revenue targets. That puts the maximum value at $2.1bn.
Guidewire says hyperexponential's platform supports underwriting decisions on more than $75bn of annual commercial premium. It names Aviva, Allianz, Sompo, Beazley, Markel, HDI, Cincinnati Financial, Convex and Bowhead as customers of the software firm, which already belongs to Guidewire's PartnerConnect technology alliance programme. Chief executive and co-founder Amrit Santhirasenan leads the target.
The deal is all cash. Guidewire plans to pay for it with $1.0bn of new term loans, backed by a binding commitment from Bank of America and Citibank, and with cash on hand. It expects completion in the second quarter of its 2027 fiscal year; the announcement lists the usual risks that the deal may be delayed or not close.
Guidewire expects the purchase to add at least 650 basis points to its annual recurring revenue growth in fiscal 2027 through the acquisition itself, and at least 150 basis points to organic recurring revenue growth from fiscal 2028. First-quarter guidance does not change; the company will update its fiscal 2027 outlook on its December earnings call. Chief executive Mike Rosenbaum said the combined group would be "uniquely positioned" to supply industry-specific AI.
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Guidewire Software (SEC Form 8-K, Exhibit 99.1) ↗Company · 27 Oct 2026
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