Guidewire Software, Inc. has entered into a definitive agreement to acquire Hyperexponential Ltd, a London-based provider of AI-native underwriting and pricing software. The transaction is valued at a base purchase price of $1.7 billion in cash, subject to adjustments for working capital, cash, indebtedness, and certain retention amounts. In addition to the base price, Guidewire may pay up to $400 million in additional contingent consideration based on the achievement of specified recurring revenue targets following the closing of the acquisition.
Guidewire expects to fund the transaction using $1.0 billion in new term loan financing secured from Bank of America, N.A. and Citibank, N.A., as well as existing cash on hand. The acquisition is expected to close in the second quarter of Guidewire’s fiscal year 2027. The company stated that the transaction will not impact its first quarter of fiscal year 2027 guidance, which was previously issued on September 3, 2026. Guidewire plans to provide guidance for the second quarter of fiscal year 2027 and update full year fiscal 2027 guidance during its next earnings call in December 2026.
Hyperexponential is an existing Guidewire PartnerConnect Technology Alliance Partner. The company powers underwriting decisions across more than $75 billion in annual commercial P&C premium for leading global insurers, reinsurers, and managing general agents. Guidewire’s CEO, Mike Rosenbaum, stated that the acquisition will help the company deliver industry-specific AI solutions to transform commercial underwriting. Hyperexponential’s CEO, Amrit Santhirasenan, noted that the partnership will bring insight from submission to bind and from the individual risk to the entire portfolio.
Guidewire has appointed Centerview Partners as its exclusive financial advisor and Latham & Watkins LLP as its legal counsel. J.P. Morgan is serving as the exclusive financial advisor to Hyperexponential, and Wilson Sonsini Goodrich & Rosati (UK) LLP is serving as its legal counsel.
