# Guidewire Agrees to Acquire Hyperexponential for $1.7 Billion

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/41945
Published: 2026-10-27T18:47:15.000Z
Updated: 2026-10-27T18:47:15.000Z
Section: Business

> The agreement covers all issued shares and allows up to $400 million in additional payments if recurring-revenue targets are met.

Guidewire Software agreed Tuesday, Oct. 27, to acquire London-based Hyperexponential Ltd. for $1.7 billion in cash, adding AI-native underwriting and pricing software for commercial insurers.

The $1.7 billion base price covers all of Hyperexponential’s issued shares, with the amount subject to adjustments for working capital, cash, debt and specified retention amounts. The agreement also allows for up to $400 million in additional payments if the business meets specified recurring-revenue targets after closing. If the full contingent amount is paid, total consideration would reach $2.1 billion; that is the maximum possible amount, not a guaranteed payment.

Guidewire plans to finance the purchase with $1 billion in new term-loan debt and cash on hand. Bank of America and Citibank have made binding commitments for the loan.

Hyperexponential develops AI-native software for underwriting and pricing commercial property and casualty insurance. Its platform has supported underwriting decisions across more than $75 billion in annual commercial property and casualty premium.

The companies already had a technology partnership through Guidewire’s PartnerConnect Technology Alliance. Guidewire’s products are used by more than 570 insurers in 44 countries.

Guidewire expects the acquisition to add at least 650 basis points to annual recurring revenue growth in fiscal 2027 on an inorganic basis. It also projects the purchase will add at least 150 basis points to organic annual recurring revenue growth beginning in fiscal 2028.

“Together we will bring greater and more scalable intelligence to the insurance decisions that will help underwrite the risks of tomorrow,” Guidewire CEO Mike Rosenbaum said.

“Together, we’ll bring insight from submission to bind and from the individual risk to the entire portfolio,” hyperexponential CEO and co-founder Amrit Santhirasenan said.

Guidewire is targeting completion in the second quarter of its fiscal 2027.