Guidewire to acquire British AI company hyperexponential for $2.1 billion

Insurance software provider Guidewire has announced it will acquire hyperexponential, an AI company specializing in commercial property and casualty insurance. The deal, which could reach a total value of $2.1 billion, aims to strengthen Guidewire's risk assessment and pricing tools for insurers.

Under the agreement, a cash payment of $1.7 billion will be made, with up to $400 million in additional payments planned based on revenue targets. Guidewire stated that through this integration, AI agents will work alongside insurers to accelerate risk analysis, pricing, and decision-making processes.

The acquisition will be financed through $1 billion in new term loans provided by Bank of America and Citibank, as well as the company's existing cash reserves. The transaction is expected to close in the second quarter of Guidewire's 2027 fiscal year and is not anticipated to have an impact on the company's first-quarter forecasts. Currently serving more than 570 property and casualty insurers across 44 countries, Guidewire aims to solidify its position in AI-driven insurance technologies with this move.