Mergers & Acquisitions ·
Guidewire agrees to acquire hyperexponential for $1.7B in cash plus up to $400M contingent consideration
GWREGuidewire Software, Inc.
Guidewire Software entered into a definitive agreement to acquire all issued share capital of Hyperexponential Ltd, an AI-native underwriting platform provider, for a base purchase price of $1.7 billion in cash, subject to adjustments, and up to an additional $400 million in contingent consideration based on recurring revenue targets. The company secured a binding commitment for a $1.0 billion senior secured incremental term loan facility from Bank of America and Citibank to fund the transaction alongside existing cash. The acquisition is expected to close in the second quarter of fiscal year 2027 without conditions related to financing. Guidewire expects the deal to add at least 650 basis points to fiscal 2027 ARR growth and accelerate organic growth thereafter. Guidewire Software provides cloud-based policy administration, billing, and claims systems for property and casualty insurers.