Guidewire has agreed to acquire London-based underwriting and pricing software firm hyperexponential for a base price of $1.7 billion in cash, subject to adjustments. The Guidewire acquisition also includes up to $400 million in contingent consideration tied to recurring revenue targets.

Key Takeaways

  • Guidewire plans to fund the transaction with $1 billion in new term loan financing and existing cash.
  • The companies expect the acquisition to close in Guidewire’s second fiscal quarter of 2027.

Guidewire acquisition terms and financing

The definitive agreement provides for additional payments only if hyperexponential achieves specified recurring revenue targets. The base purchase price is subject to adjustments.

Bank of America and Citibank were reported to have provided a binding commitment for the new term loan. The transaction has not yet closed.

What hyperexponential brings

Hyperexponential, also known as hx, provides an AI-native platform for underwriting and pricing commercial property and casualty insurance. It is already a Guidewire PartnerConnect Technology Alliance Partner.

Guidewire said the combination would support an approach in which AI agents work alongside underwriters and actuaries to assess and price risks. The company said it expects the technology to help insurers respond to more submissions and make faster decisions.

Advisers on the transaction

Centerview Partners is Guidewire’s financial adviser, and Latham & Watkins is its legal counsel. J.P. Morgan is advising hyperexponential financially, while Wilson Sonsini Goodrich & Rosati is its legal counsel.

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