Guidewire agreed to acquire London-based Hyperexponential Ltd. for up to $2.1 billion, adding underwriting and pricing software as it expands AI capabilities for commercial insurance decisions.
The agreement covers all issued shares of Hyperexponential Ltd., which uses the brand name hyperexponential. The cash base price is $1.7 billion and may be adjusted for working capital, cash, indebtedness and certain retention amounts. Shareholders could receive up to $400 million more if recurring-revenue targets are met after closing, bringing the potential total to $2.1 billion before adjustments.
Guidewire expects the transaction to close in the second quarter of fiscal 2027. It plans to combine cash on hand with a new $1 billion term-loan facility, with Bank of America and Citibank committed as lenders. Guidewire’s filing states that the acquisition has no closing conditions and is not contingent on the loan proceeds. The loan commitment, in turn, is subject to customary limited conditions.
hyperexponential sells AI-native pricing and underwriting software to commercial property and casualty insurers. The company says its software has powered underwriting decisions covering more than $75 billion in annual commercial property and casualty premiums. Guidewire says it is aiming for software in which AI agents support the risk review and pricing work of underwriting and actuarial teams. The companies already had a commercial relationship: hyperexponential was a Guidewire PartnerConnect Technology Alliance Partner.
Amrit Santhirasenan, hyperexponential CEO and co-founder, said, “underwriting judgment is the highest-leverage work insurers do.”
Guidewire estimates the deal will lift fiscal 2027 annual recurring revenue growth by at least 650 basis points on an inorganic basis. Starting in fiscal 2028, it projects an organic growth contribution of at least 150 basis points. The company expects no change to its previously issued first-quarter fiscal 2027 guidance and plans to update its second-quarter and full-year fiscal 2027 guidance on its December 2026 earnings call.
