hyperexponential

Insurtech · AI · Enterprise Software

Acquisition

Guidewire buys underwriting AI startup hyperexponential for up to $2.1B

The deal bets that AI agents can start pricing risk and making underwriting calls, not just assisting human underwriters.

• Guidewire signed a definitive agreement to acquire London-based hyperexponential for a $1.7 billion cash base price, plus up to $400 million more tied to recurring revenue targets.
• hyperexponential builds AI-native underwriting and pricing software for commercial P&C insurers, and its platform has already powered decisions across more than $75 billion in annual commercial premium.
• Guidewire will fund the deal with $1 billion in new term loans from Bank of America and Citibank alongside cash on hand; closing isn't conditioned on securing that financing.
• Guidewire expects the acquisition to add at least 650 basis points to fiscal 2027 ARR growth and at least 150 basis points to organic growth starting fiscal 2028.
• hyperexponential was already a Guidewire PartnerConnect Technology Alliance Partner, so the acquisition converts an existing integration partnership into full ownership.
• The purchase shows core insurance software vendors racing to own the AI layer that actually sets prices and risk decisions, not just the policy administration systems around it.