Guidewire to buy UK insurance AI firm hyperexponential in deal worth up to $2.1 billion

(Corrects to removes extraneous word in fifth bullet)

Oct 27 (Reuters) - Insurance software maker Guidewire said on Tuesday it would buy hyperexponential for $1.7 billion in cash and up to $400 million more if revenue targets are met, to expand into AI tools that help insurers assess price and risk.

• London-based hyperexponential makes AI-powered underwriting and pricing software for commercial property and casualty insurers

• The deal will let AI agents work alongside underwriters to assess risk, price it and make decisions, Guidewire said

• It will fund the deal with $1 billion in new term loans from Bank of America and Citibank as well as cash on hand

• The deal is expected to close in the second quarter of Guidewire’s fiscal 2027 and will not affect its first-quarter forecast

• Guidewire’s software is used by more than 570 property and casualty insurers in 44 countries

(Reporting by Anzar Mehraj in Bengaluru; Editing by Joyjeet Das)