Guidewire Software, Inc. (GWRE) Form 8-K — Oct 27, 2026
Guidewire (NYSE: GWRE) signed a definitive agreement to acquire London-based hyperexponential, an AI-native underwriting and pricing platform for commercial P&C insurers, for $1.7 billion in cash plus up to $400 million in contingent consideration based on recurring revenue targets. The deal will be funded with a newly committed $1.0 billion term loan from Bank of America and Citibank plus cash on hand, and is expected to close in Q2 of fiscal 2027 with no financing condition. Guidewire says the acquisition adds at least 650 basis points to FY27 ARR growth (inorganic) and at least 150 basis points to durable organic ARR growth starting FY28.
Key figures
- Debt Amount
- $1.0 billion
- Deal Value Usd
- $1.7 billion base purchase price (cash), plus up to $400 million contingent consideration
- Interest Rate
- Term SOFR plus 1.00%-2.00% margin (leverage-based pricing grid); base rate plus 0.00%-1.00%
- Maturity Date
- December 2, 2029
- Amortization
- 5.0% per annum quarterly, commencing fifth full fiscal quarter after closing
- Hx team size
- ~300
- Expected closing
- Q2 fiscal 2027 (quarter ending January 31, 2027)
- Contingent consideration
- up to $400.0 million
- Hx annual premium powered
- more than $75 billion in annual commercial P&C premium
- Organic arr growth acceleration fy28
- at least 150 basis points (press release) / over 100 bps after FY27 (deck)
- Fy27 arr growth inorganic contribution
- at least 650 basis points
AI analysis
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