Guidewire announced the acquisition of Hyperexponential for $1.7 billion in cash, with the deal expected to close next year. The total deal value reaches around $2 billion if Hyperexponential hits certain revenue targets, which would unlock an additional $400 million in capital.
Hyperexponential builds AI agents designed to work alongside humans on insurance underwriting, analysis, and pricing decisions. The U.K.-based startup was founded in 2017 and counts nearly 600 insurers across 40 countries as users of its software.
Hyperexponential raised nearly $90 million before this exit, backed by Andreessen Horowitz and Battery Ventures. According to PitchBook, the acquisition marks a significant return for those investors.