Guidewire Software agrees to buy Hyperexponential for $1.7 billion in cash

Guidewire will also pay up to $400 million more after closing, depending on recurring revenue targets.

Guidewire Software has agreed to buy Hyperexponential Ltd, a London-based maker of AI-native underwriting and pricing software for commercial property and casualty (P&C) insurers. The base price is $1.7 billion in cash, subject to adjustments.

Guidewire will also pay up to $400 million more after the deal closes. That payment is tied to recurring revenue targets. Guidewire plans to fund the purchase with a new $1.0 billion term loan from Bank of America and Citibank, along with cash on hand.

The deal is expected to close in the second quarter of Guidewire's fiscal year 2027. The agreement is not subject to any closing conditions.

The purchase follows a new top-10 carrier win on Guidewire's Cloud and PolicyCenter products, disclosed on September 30. It marks a shift in how Guidewire grows. Until now, growth has come from bookings on its existing business. This deal adds growth through acquisition, paid for partly with debt. The $1.7 billion base price, plus up to $400 million more, and the $1.0 billion loan add debt the company did not carry before. Closing is not expected until the second quarter of fiscal 2027. How Hyperexponential's technology fits alongside Guidewire's commercial P&C offering, and alongside the newly signed carrier, will shape how that added debt is viewed against growth in recurring revenue.