Guidewire Software has agreed to acquire hyperexponential, a London-based provider of AI-native underwriting and pricing software for commercial insurers, for US$1.7bn in cash plus up to US$400m in contingent consideration, the company said on 27 October 2026.
Why Guidewire Software, Inc. is buying Hyperexponential Ltd (hx)
Guidewire said the combination would bring agentic underwriting to commercial property and casualty insurers and is expected to accelerate annual recurring revenue and revenue growth while remaining consistent with its long-term margin targets. hyperexponential's platform supports underwriting decisions on more than US$75bn of annual commercial premium, with customers including Aviva, Allianz, Sompo, Beazley, Markel and HDI.
“We're delighted to welcome Amrit Santhirasenan and the team at hyperexponential to Guidewire.”
Deal terms and financing
The base price of US$1.7bn in cash is subject to adjustments, with up to US$400m more payable if specified recurring revenue targets are met. Guidewire will fund the deal with US$1.0bn of new term loans, backed by a binding commitment from Bank of America and Citibank, and existing cash. Guidewire expects the deal to add at least 650 basis points to inorganic ARR growth in fiscal 2027.
Regulatory approvals and timing
Closing is subject to customary conditions and is expected in the second quarter of Guidewire's 2027 fiscal year.
Market context
hyperexponential was already a Guidewire PartnerConnect technology alliance partner. Guidewire announced the deal at its Connections conference in Las Vegas and said it would not affect its first-quarter fiscal 2027 guidance.
