Guidewire agrees to buy hyperexponential for up to $2.1 bn

Guidewire Software has entered into a definitive agreement to acquire London-based insurance technology company hyperexponential, known as hx, for a base price of $1.7 bn in cash, subject to adjustments. Up to $400 mn in additional consideration is tied to specified recurring revenue targets.

The companies say the deal will combine hyperexponential's agentic underwriting platform with Guidewire's P&C core systems. Guidewire expects it to add at least 650 basis points to fiscal 2027 ARR growth on an inorganic basis and at least 150 basis points to organic ARR growth from fiscal 2028.

Guidewire plans to fund the deal with $1 bn of new term loans and cash on hand. Bank of America and Citibank have provided binding debt commitments. Closing is expected in the second quarter of fiscal 2027. Centerview Partners and Latham & Watkins advise Guidewire, while J.P. Morgan and Wilson Sonsini Goodrich & Rosati (UK) advise hyperexponential.