Guidewire, a technology company focused on the insurance sector, announced on Tuesday that it will acquire the underwriting technology firm Hyperexponential for $1.7 billion in cash.
The transaction is projected to finalize next year and aims to integrate artificial intelligence to support human decision-making in underwriting, analysis, and pricing. The total value of the agreement may reach approximately $2 billion, which includes an additional $400 million earmarked for achievement of specific revenue benchmarks.
Founded in 2017 and backed by major investors like Andreessen Horowitz and Battery Ventures, Hyperexponential has raised close to $90 million to date, according to PitchBook. This acquisition represents a substantial return for its investors. The London-based AI firm claims that its technology is utilized by nearly 600 insurance companies across 40 countries.
