Guidewire agrees to acquire hyperexponential for up to $2.1 billion
Guidewire agreed to acquire hyperexponential for a base price of $1.7 billion in cash, plus up to $400 million tied to recurring revenue targets, the company said in a press release. The transaction is expected to close in the second quarter of Guidewire's 2027 fiscal year.
London based hyperexponential provides AI software for underwriting and pricing in commercial property and casualty insurance. Its platform supports submission assessment, risk pricing and portfolio management, and has processed decisions covering more than $75 billion in annual commercial insurance premiums.
Guidewire plans to fund the acquisition with $1 billion in new term loan financing and cash on hand. It expects the transaction to add at least 650 basis points to annual recurring revenue growth in fiscal 2027, followed by at least 150 basis points of organic annual recurring revenue growth from fiscal 2028.
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