Guidewire to Buy Insurance AI Firm hyperexponential for Up to $2.1 Billion

What happened

Under the funding plan disclosed by Guidewire, the deal will be paid for with $1 billion in new term loans from Bank of America and Citibank plus cash on hand; it is expected to close in the second quarter of Guidewire's fiscal 2027, and Guidewire said it will not affect its first-quarter forecast.

hyperexponential is based in London and makes AI-powered underwriting and pricing software for commercial property and casualty insurers; Guidewire said the deal will let AI agents work alongside underwriters to assess risk, price it and make decisions.

Key facts

1. Deal value: $1.7 billion in cash, plus up to $400 million if revenue targets are met, for a total of up to $2.1 billion.
2. Target: London-based insurance AI firm hyperexponential, which provides AI underwriting and pricing software for commercial property and casualty insurers.
3. Purpose: To expand AI tools that help insurers assess risk and price it, with AI agents working alongside underwriters to assess risk, price it and make decisions.
4. Financing: $1 billion in new term loans from Bank of America and Citibank, plus cash on hand.
5. Expected close: The second quarter of Guidewire's fiscal 2027.
6. Effect on current forecast: Guidewire said the deal will not affect its first-quarter forecast.
7. Guidewire's customer network: Its software is used by more than 570 property and casualty insurers in 44 countries.