Insurance software maker Guidewire disclosed on Tuesday that it will purchase the agentic underwriting firm Hyperexponential for $1.7 billion in cash.
The transaction, slated to close sometime next year, aims to introduce AI agents that work with humans to underwrite, analyse and price decisions. The overall value is around $2 billion, including a $400 million tranche of additional capital that could be released if specific revenue targets are achieved.
Hyperexponential, backed by Andreessen Horowitz and Battery Ventures, was founded in 2017 and has raised nearly $90 million to date, according to PitchBook. This exit represents a notable return for its investors. The U.K.-based AI startup reports that its software is used by almost 600 insurers in 40 countries.
