Guidewire to Acquire hyperexponential in Deal Worth Up to $2.1 Billion

2 min read

Guidewire Software said on October 27 that it has entered into a definitive agreement to acquire Hyperexponential Ltd, known as hyperexponential or hx, for a base purchase price of $1.7 billion in cash, plus up to an additional $400 million if the business hits specified recurring revenue targets, the company said in a release distributed by PR Newswire. The London-based company makes AI-native underwriting and pricing software for commercial property and casualty insurers, and the deal, worth up to $2.1 billion in total, is expected to close in the second quarter of Guidewire’s fiscal 2027.

hyperexponential is already a Guidewire PartnerConnect technology partner, and its platform has powered underwriting decisions across more than $75 billion in annual commercial property and casualty premium for global insurers, reinsurers and managing general agents, the companies said. Its customers include Aviva, Allianz and Sompo. Guidewire, whose platform is used by more than 570 insurers in 44 countries, said the acquisition is the latest large technology deal tracked by our Corporate America desk.

The companies framed the deal around what they called agentic underwriting, in which AI agents work alongside underwriters and actuaries to assess risk, price it and make decisions, from complex specialty risks to high-volume commercial business. “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,” Guidewire Chief Executive Mike Rosenbaum said in the release. hyperexponential co-founder and Chief Executive Amrit Santhirasenan said the combined company would bring insight “from submission to bind and from the individual risk to the entire portfolio,” helping insurers respond to submissions faster and improve loss ratios.

Guidewire said it expects to fund the purchase with $1.0 billion in new term loans and cash on hand, with a binding debt commitment from Bank of America and Citibank. The company expects the deal to add at least 650 basis points to its fiscal 2027 growth in annual recurring revenue on an inorganic basis, and at least 150 basis points to durable organic growth from fiscal 2028, while leaving its first-quarter fiscal 2027 guidance unchanged. For readers weighing what a headline purchase price does and does not capture, our explainer on market capitalization versus enterprise value sets out why the stated price of a company is only part of its total value. Centerview Partners and Latham & Watkins advised Guidewire, while J.P. Morgan and Wilson Sonsini Goodrich & Rosati advised hyperexponential.

Sources: Guidewire Software press release via PR Newswire, October 27, 2026; Reuters, October 27, 2026.

Educational coverage — not tax or investment advice.