Guidewire Signs $1.7 Billion Hyperexponential Deal
Guidewire has agreed to buy London-based Hyperexponential Ltd. for a base cash payment of $1.7 billion, with adjustments and additional payments tied to revenue targets, according to the company. The definitive agreement, dated October 27, 2026, covers all issued shares of Hyperexponential, also known as hx. The acquisition remained proposed, rather than completed, at the time of the announcement.
The companies supply different types of insurance software. In its investor presentation, Guidewire places its policy administration, billing and claims systems alongside hx’s tools for pricing, rating, underwriting workflows and decision support. Guidewire describes agentic underwriting as the use of AI agents alongside actuaries and underwriters for risk assessment, price setting and underwriting decisions.
According to Guidewire, hx software supported decisions involving annual commercial property-and-casualty insurance premiums exceeding $75 billion. That figure measures the premiums connected with those underwriting decisions, rather than hx’s revenue or the amount payable under the acquisition agreement. The companies already had a technology partnership before the transaction agreement: Guidewire’s announcement lists hx as a member of its PartnerConnect Technology Alliance programme.
Beyond the base purchase price, Guidewire said the agreement provides for additional consideration of as much as $400 million. Those payments depend on recurring-revenue targets being met after completion. The company anticipated completing the purchase during its fiscal 2027 second quarter, which ends on January 31, 2027.
For funding, Guidewire said it planned to combine existing cash with borrowing under a $1 billion senior secured Term Loan A facility. Bank of America and Citibank committed to provide that facility, according to the company’s filing. The filing states that completion of the acquisition does not depend on proceeds from either that loan or replacement financing.
Guidewire also published projections for the acquisition’s contribution to annual recurring revenue growth. For fiscal 2027, it forecast an inorganic contribution of no less than 650 basis points. From fiscal 2028, the company projected that hx would contribute a minimum of 150 basis points to organic annual recurring revenue growth. Both figures describe Guidewire’s expectations for the proposed acquisition, not results already recorded.
* This article is based on publicly available information at the time of writing.