Guidewire to Acquire AI Underwriting Startup Hyperexponential for $1.7 Billion
Insurance software company Guidewire said on Tuesday it will buy the U.K.-based startup Hyperexponential for $1.7 billion in cash. The deal is meant to bring AI agents into insurers' day-to-day work alongside people.
Guidewire, a company that makes technology for the insurance industry, announced on Tuesday, October 27, that it will acquire Hyperexponential, a U.K.-based startup building software that uses AI agents for insurance underwriting, the process of assessing risk. The purchase price is $1.7 billion in cash, and the transaction is expected to close at some point next year.
The companies say the move is intended to help AI agents work alongside humans when underwriting, analyzing and pricing decisions are made in insurance.
Deal size
The total value of the transaction is around $2 billion. A further $400 million has been set aside in case certain revenue targets are reached.
About Hyperexponential
Hyperexponential was founded in 2017. According to PitchBook, a financial data provider, it has raised nearly $90 million to date. Its backers include the venture capital firms Andreessen Horowitz and Battery Ventures, so the sale represents a significant return for investors.
The startup says nearly 600 insurers in 40 countries use its software.
