Guidewire Software, Inc. announced a definitive agreement to acquire Hyperexponential Ltd, a provider of AI-native underwriting and pricing software for commercial P&C insurers. The transaction includes a $1.7 billion cash payment and up to $400 million in performance-based contingent consideration. The acquisition aims to combine Guidewire's core insurance platform with Hyperexponential's AI capabilities to create an "agentic underwriting" platform.
Key Details
- Transaction Terms: The deal consists of a $1.7 billion base purchase price in cash, with up to an additional $400 million in contingent consideration based on achieving specific recurring revenue targets.
- Financing & Timeline: The acquisition will be funded through a new $1.0 billion senior secured term loan and existing cash on hand. The transaction is expected to close in the second quarter of Guidewire's fiscal year 2027.
- Strategic Impact: Guidewire expects the acquisition to accelerate its growth, projecting it will add over 650 basis points to its fiscal year 2027 Annual Recurring Revenue (ARR) growth on an inorganic basis.