Guidewire, a cloud software provider serving more than 570 property and casualty (P&C) insurers worldwide, has agreed to acquire London-based underwriting technology company hyperexponential, known as hx, in a deal worth up to $2.1bn.

Under the definitive agreement, Guidewire will pay $1.7bn in cash, subject to adjustments, with a further $400m in contingent consideration tied to recurring revenue targets. The company plans to finance the transaction through $1bn in new term loan financing and existing cash reserves, with Bank of America and Citibank providing binding debt commitments.

The acquisition is intended to strengthen Guidewire’s position in agentic underwriting, an approach in which AI agents work alongside underwriters and actuaries to assess risks, calculate prices and support underwriting decisions. The combined technology is expected to help insurers process more submissions at greater speed, apply underwriting expertise more consistently and direct specialists towards complex cases.

Guidewire expects the technology to support insurers across both specialty risks and high-volume commercial business. It believes the combination could help carriers improve underwriting profitability, enter new lines of business and make better use of human expertise.

Financially, Guidewire expects the acquisition to accelerate annual recurring revenue (ARR) and revenue growth while maintaining its long-term margin objectives. The company forecasts that hx will contribute at least 650 basis points to ARR growth in fiscal 2027 on an inorganic basis, followed by at least 150 basis points annually to organic ARR growth from fiscal 2028.

Founded in London, hx provides an AI-native underwriting and pricing platform for commercial P&C insurers.

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