Guidewire Pays $1.7 Billion Cash for Hyperexponential, Funding $1 Billion With Debt

Guidewire agreed on October 27, 2026 to buy hyperexponential, a London underwriting and pricing software company, for $1.7 billion in cash plus up to $400 million more if revenue targets are met. TechCrunch put the combined figure at about $2 billion and cited PitchBook for nearly $90 million of funding raised by the target since its 2017 founding.

That is roughly 19 times the capital raised on the base price alone. It is also an acquisition that was signed, not completed: the deal needs to close first.

The terms in Guidewire's filing

Guidewire's press release, filed as an 8-K exhibit, is more specific than the press coverage. The $1.7 billion is a base price subject to adjustments. The extra $400 million is contingent on hyperexponential reaching specified recurring revenue targets, which the release does not disclose.

Term	Detail
Base price	$1.7 billion cash, subject to adjustments
Contingent	Up to $400 million on recurring revenue targets
Financing	$1.0 billion term loan plus cash on hand
Lenders	Bank of America, N.A. and Citibank, N.A. (binding commitment)
Expected close	Q2 of Guidewire's fiscal 2027

So about 59% of the base price is borrowed. Guidewire said it expects at least 650 basis points of inorganic ARR growth contribution in fiscal 2027 and at least 150 basis points of durable organic ARR growth from fiscal 2028. The release gives no ARR figure for hyperexponential itself, and TechCrunch reports that revenue and headcount were not disclosed.

What hyperexponential sells and to whom

The release describes hyperexponential as a provider of AI-native underwriting and pricing software for commercial lines property and casualty insurers, and already a Guidewire PartnerConnect Technology Alliance Partner. Its software supports underwriting decisions on more than $75 billion in annual commercial premium, the release says, which is Guidewire's figure for the target's reach.

Named customers in the release are Aviva, Allianz, Sompo, Beazley, Markel, HDI, Cincinnati Financial, Convex and Bowhead. TechCrunch counts nearly 600 insurers in 40 countries. The two counts are not necessarily in conflict, since the release lists named accounts and TechCrunch gives a total, but they are different measures.

The release quotes Mike Rosenbaum, Guidewire's chief executive officer, welcoming Amrit Santhirasenan, chief executive officer and co-founder of hyperexponential, and the team. The advisers were Centerview Partners for Guidewire and J.P. Morgan for hyperexponential.

Who gets paid

TechCrunch names Andreessen Horowitz and Battery Ventures as investors. Neither the release nor TechCrunch gives ownership percentages, so the proceeds to each investor cannot be calculated. With nearly $90 million raised and a base price of $1.7 billion, the arithmetic is favourable for backers in any plausible structure, but liquidation preferences and the earn-out split are not public.

For the other side of the market, see our coverage of the $2.1 billion Re:Build fund and the $10 billion Disruptive fund, which are about money going into private companies. This deal is money coming back out of one.

What to watch next

Guidewire said it will give Q2 fiscal 2027 guidance and an updated full-year outlook on its December 2026 earnings call. That call is the first place the earn-out targets, any amortisation effect and the debt cost could appear. TechCrunch reports the close is expected sometime next year, which is consistent with the release's fiscal-quarter wording.