Guidewire to buy insurance AI firm hyperexponential for up to $2.1 billion

Guidewire said on October 27, 2026, that it would acquire insurance AI software company hyperexponential for $1.7 billion in cash, plus up to $400 million if revenue targets are met. The proposed purchase would bring a specialist in commercial insurance underwriting into a software business serving insurers across dozens of countries.

AI alongside insurance underwriters

London-based hyperexponential makes AI-powered underwriting and pricing software for commercial property and casualty insurers. Its business centers on the work behind an insurance offer: evaluating the risk an insurer would take on and deciding what to charge for covering it.

Guidewire says the deal would let AI agents work alongside underwriters to assess risk, price it and make decisions. The company describes a role alongside human staff, rather than replacing them. That is its intended outcome for the acquisition, not an announcement that the combined tools are already available.

The buyer already has a substantial insurance software footprint: more than 570 property and casualty insurers across 44 countries use Guidewire’s software. Hyperexponential would add its specialized underwriting and pricing business to that existing supplier.

$1 billionPlanned new term loans

Guidewire plans to finance the acquisition with new term loans from Bank of America and Citibank, together with cash it already holds.

A conditional price and a fiscal 2027 closing

The maximum $2.1 billion consideration is conditional, not a guaranteed payment. The revenue-linked portion ties part of the purchase price to hyperexponential meeting targets, with the additional payment capped at $400 million.

Guidewire expects the acquisition to close in the second quarter of its fiscal 2027. That timetable refers to the company’s financial year, rather than the calendar year. The company also said the transaction would not affect its first-quarter forecast.