’Together, we will bring greater and more scalable intelligence to the insurance decisions that will help underwrite the risks of tomorrow,’ says chief executive
Guidewire has agreed to acquire London-based insurance technology firm hyperexponential in a deal worth up to $2.1bn (£1.6bn).
Under the definitive agreement, Guidewire will pay a base price of $1.7bn (£1.28bn) in cash, subject to adjustments, with up to a further $400m (£300m) payable depending on hyperexponential achieving specified recurring revenue targets.
Hyperexponential provides artificial intelligence (AI)-native underwriting and pricing technology for commercial property and casualty (P&C) insurers and is already a Guidewire PartnerConnect Technology Alliance Partner.
The firm’s technology supports underwriting decisions across more than $75bn (£56.2bn) in annual commercial P&C premium for insurers, reinsurers and MGAs.
“We founded hyperexponential on the conviction that underwriting judgment is the highest-leverage work insurers do,” said Amrit Santhirasenan, chief executive and co-founder at hyperexponential.
“Guidewire is the most trusted name in P&C insurance technology, with deep expertise in managing and safeguarding the policy and risk information insurers rely on throughout the insurance lifecycle.
”Together, we’ll bring insight from submission to bind and from the individual risk to the entire portfolio.”
AI underwriting
Guidewire said the acquisition would strengthen its position in P&C technology and sets up the company to define agentic underwriting.
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The new approach will see AI agents work alongside underwriters and actuaries to assess risk, price it and make decisions, from the most complex specialty risks to high-volume commercial business.
In turn, Guidewire expects the deal to accelerate annual recurring revenue (ARR) and revenue growth while remaining consistent with its long-term margin targets.
Mike Rosenbaum, chief executive at Guidewire, said: “Insurance is a distinctly complex industry, where the quality of risk decisions has an immense impact on business outcomes.
”Guidewire and hyperexponential are uniquely positioned to deliver industry-specific AI solutions that will transform commercial underwriting. Together, we will bring greater and more scalable intelligence to the insurance decisions that will help underwrite the risks of tomorrow.”
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