Guidewire to Acquire AI Underwriting Firm Hyperexponential for Up to $2.1 Billion

Guidewire Software (NYSE: GWRE) announced a definitive agreement on Tuesday to acquire London-based hyperexponential, an AI-native underwriting and pricing software provider, for a base purchase price of $1.7 billion in cash, plus up to $400 million in additional contingent payments tied to recurring revenue targets, bringing the potential deal value to $2.1 billion. The announcement was made at Guidewire's Connections Conference in Las Vegas.

Hyperexponential, an existing Guidewire PartnerConnect Technology Alliance Partner, operates an agentic platform that has powered underwriting decisions across more than $75 billion in annual commercial property and casualty premium for global insurers, reinsurers, and managing general agents. The deal is designed to advance what Guidewire describes as "agentic underwriting," in which AI agents work alongside underwriters and actuaries to assess risk, price it, and make decisions across commercial and specialty lines.

Guidewire plans to fund the acquisition with $1 billion in new debt and cash on hand. The company said the deal is expected to add at least 6.5 percentage points to fiscal year 2027 annual recurring revenue growth, followed by at least 1.5 percentage points of additional organic ARR growth per year beginning in FY28, while remaining consistent with its long-term margin targets. Shares of GWRE were down approximately 0.8% in premarket trading following the announcement.