Guidewire agrees to buy London pricing firm hyperexponential for $1.7bn
Up to $400m more is tied to recurring revenue targets for hx, whose platform has priced more than $75bn of annual premium.
Guidewire has agreed to buy hyperexponential, the London-based underwriting and pricing software company, for a base price of $1.7bn in cash, plus up to $400m tied to recurring revenue targets, it said on 27 October.
The deal matters to UK carriers, syndicates and MGAs because hyperexponential, known as hx, serves commercial and specialty insurers, reinsurers and MGAs. Its pricing platform will become part of Guidewire's insurance software business.
Guidewire said hx has powered underwriting decisions across more than $75bn in annual commercial P&C premium for insurers, reinsurers and MGAs. hx is already a Guidewire technology alliance partner. TechCrunch reported that nearly 600 insurers in 40 countries use its software.
Guidewire will fund the purchase with $1bn in new term loans, committed by Bank of America and Citibank, and existing cash. It expects the deal to close in the second quarter of its 2027 financial year, and its filing says closing is not subject to any conditions.
"Guidewire and hyperexponential are uniquely positioned to deliver industry-specific AI solutions that will transform commercial underwriting," said Mike Rosenbaum, chief executive of Guidewire.
Guidewire frames the deal around what it calls agentic underwriting, where AI agents assess, price and make decisions alongside underwriters and actuaries. It expects hx to add at least 650 basis points to its 2027 annual recurring revenue growth.
The price is several times the roughly $275m Guidewire agreed to pay for cyber risk analytics company Cyence in October 2017 (Guidewire).
Guidewire will give updated guidance on its December earnings call.
Related coverage: Skyward becomes primary carrier for AI-native embedded insurer Slingshot and DXC enters talks to sell insurance division to Eldridge for about $2.4bn.
Sources
- Guidewire Signs Definitive Agreement to Acquire hyperexponential, Guidewire, 27 October 2026
- Guidewire Form 8-K, 27 October 2026
- Guidewire buys Hyperexponential for $1.7B in cash, TechCrunch, 27 October 2026
- Guidewire: Guidewire to Acquire Cyence (6 October 2017)
CoverWire is a news and information service. Nothing here is investment advice.
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