Guidewire to acquire Hyperexponential for $1.7 billion in cash

Insurance technology company Guidewire announced Tuesday that it has agreed to acquire UK-based underwriting software company Hyperexponential for $1.7 billion in cash.

The deal is expected to close sometime next year. Guidewire says the acquisition is intended to bring AI agents into work alongside people who underwrite risks, analyze data and make pricing decisions.

The total deal value is around $2 billion, including $400 million in additional capital reserved if certain revenue targets are met. The source does not specify the conditions for that capital beyond those targets.

Hyperexponential, which describes itself as an agentic underwriting company, was founded in 2017 and has raised nearly $90 million, according to PitchBook. The company says nearly 600 insurers in 40 countries use its software. Its investors include Andreessen Horowitz and Battery Ventures.