Guidewire to acquire hyperexponential for up to $2.1 bn in AI underwriting deal

Guidewire Software (NYSE: GWRE) has entered into a definitive agreement to acquire London-based insurance technology company hyperexponential for a base purchase price of $1.7 bn in cash, subject to adjustments, with up to $400 mn in additional consideration tied to specified recurring revenue targets.

The transaction, potentially valued at $2.1 bn, will expand Guidewire’s capabilities in AI-native underwriting and pricing software for commercial property and casualty (P&C) insurers.

• Guidewire will acquire London-based hyperexponential for $1.7 bn in cash, with up to $400 mn in additional payments tied to recurring revenue targets.
• hyperexponential supports underwriting decisions across more than $75 bn in annual commercial P&C premiums for global insurers, reinsurers and MGAs.
• The acquisition is expected to add at least 650 basis points to Guidewire’s fiscal 2027 ARR growth and 150 basis points to organic ARR growth from fiscal 2028.

hyperexponential, also known as hx, develops an agentic underwriting platform used by insurers, reinsurers and managing general agents (MGAs). Its technology supports underwriting decisions involving more than $75 bn in annual commercial P&C premiums.

The company is already part of Guidewire’s PartnerConnect Technology Alliance Partner network. Guidewire expects the acquisition to accelerate annual recurring revenue (ARR) and overall revenue growth while remaining consistent with its long-term margin targets.

Guidewire expands AI underwriting and pricing capabilities

The acquisition will combine Guidewire’s P&C insurance technology with hyperexponential’s underwriting and pricing platform, which uses AI agents to support underwriters and actuaries in risk assessment, pricing and decision-making.

The technology is designed for both complex specialty insurance risks and high-volume commercial business. It allows insurers to process more submissions, shorten response times and apply consistent underwriting judgments across their portfolios.

Guidewire expects the combined capabilities to help insurers improve underwriting profitability, enter new business lines and allocate specialist underwriting resources to more complex risks.

We’re delighted to welcome Amrit Santhirasenan and the team at hyperexponential to Guidewire. There isn’t another company in the world whose passion for insurance, technical ambition, and vision for the potential of AI in insurance align so closely with our own.

Mike Rosenbaum, chief executive officer of Guidewire

“Insurance is a distinctly complex industry, where the quality of risk decisions has an immense impact on business outcomes. Guidewire and hyperexponential are uniquely positioned to deliver industry-specific AI solutions that will transform commercial underwriting. Together we will bring greater and more scalable intelligence to the insurance decisions that will help underwrite the risks of tomorrow.”

Agentic AI to support commercial insurance underwriting decisions

hyperexponential’s technology covers submission triage, risk assessment, pricing, rating and portfolio management. The platform is intended to help insurers assess more opportunities while maintaining underwriting discipline and improving loss ratios.

Amrit Santhirasenan, CEO and co-founder of hyperexponential, said the transaction would connect underwriting intelligence with the policy and risk information managed through Guidewire’s systems.

We founded hyperexponential on the conviction that underwriting judgment is the highest-leverage work insurers do.

Amrit Santhirasenan, CEO and co-founder of hyperexponential

“Guidewire is the most trusted name in P&C insurance technology, with deep expertise in managing and safeguarding the policy and risk information insurers rely on throughout the insurance lifecycle. Together, we’ll bring insight from submission to bind and from the individual risk to the entire portfolio. With hx and Guidewire, insurers will be able to respond to submissions faster and, more importantly, improve loss ratios and allocate capital more effectively.”

The companies see opportunities to improve underwriting efficiency as insurers respond to changing environmental conditions, market dynamics and regulatory requirements.

Research from Celent, published in its report “AI Trends Across the Insurance Value Chain: P&C Edition – North America,” identifies reductions in time-to-quote as one factor through which AI can influence insurers’ revenue performance.

Celent cited research from an industry consulting firm working with US and UK commercial P&C insurers, which found that AI can significantly improve underwriting efficiency in complex insurance lines.

The research also indicated that using previously unstructured data, including telematics, satellite imagery and historical loss information, could reduce loss ratios by several percentage points.

Acquisition expected to accelerate Guidewire ARR growth

hyperexponential has established a substantial presence among commercial and specialty insurers, particularly in the UK. Its customers include Aviva, Allianz, Sompo, Beazley, Markel, HDI, Cincinnati Financial, Convex and Bowhead.

Guidewire expects the acquisition to contribute at least 650 basis points to its fiscal 2027 ARR growth on an inorganic basis.

Beginning in fiscal 2028, the company anticipates an additional contribution of at least 150 basis points to durable organic ARR growth.

These projections form part of Guidewire’s expectations that hyperexponential will strengthen its longer-term revenue growth while remaining aligned with existing profitability objectives.

Guidewire acquisition financing and closing timeline

Guidewire plans to finance the acquisition through $1 bn in new term loan financing and cash already available on its balance sheet.

Bank of America, N.A. and Citibank, N.A. have provided binding debt commitments for the proposed financing. The transaction is expected to close during the second quarter of Guidewire’s fiscal 2027.

Guidewire does not expect the acquisition to affect its previously issued guidance for the first quarter of fiscal 2027, announced on September 3, 2026.

The company plans to provide second-quarter fiscal 2027 guidance and update its full-year financial outlook during its next earnings call in December 2026.

Centerview Partners is acting as Guidewire’s exclusive financial advisor, with Latham & Watkins LLP providing legal counsel.

J.P. Morgan is serving as hyperexponential’s exclusive financial advisor, while Wilson Sonsini Goodrich & Rosati (UK) LLP is acting as legal counsel.

Guidewire strengthens its commercial P&C insurance technology portfolio

Guidewire provides core insurance systems, digital technology, data analytics and AI capabilities for P&C insurers. More than 570 insurance companies across 44 countries use its products, ranging from newly established carriers to large international insurance groups.

The acquisition adds a specialist underwriting and pricing platform to that existing technology portfolio.

hyperexponential’s software supports commercial insurance decisions throughout the underwriting process, including submission evaluation, risk selection, rating, pricing and portfolio steering.

Its established customer base and involvement in underwriting decisions across more than $75 bn in annual commercial P&C premiums provide Guidewire with an existing commercial insurance footprint as it expands its agentic AI capabilities.

The companies intend to combine hyperexponential’s underwriting technology with Guidewire’s policy and risk management systems, connecting individual underwriting decisions with broader portfolio performance and capital allocation.