GWRE Guidewire Software Inc

Software M&A is opening up: Guidewire acquiring hyperexponential for $1.7B follows Salesforce buying Braze, and more deals are coming. $GWRE $CRM $IGV

$GWRE Is Guidewire paying too much at $1.7B in cash for underwriting-AI firm hyperexponential? 🤝 Guidewire, whose software more than 570 P&C insurers rely on, agreed to buy London-based underwriting-AI firm hyperexponential for $1.7B in cash plus an earn-out of up to $400M tied to recurring revenue ⚠️ The $1.7B base price is about 11% of Guidewire's $15.08B market value at the October 26, 2026 close of $183.96 (16:00 ET); a new $1.0B Term Loan A plus cash pays it, leaving roughly $0.5B of its $1.22B cash and investments at July 31, 2026 before fees and any earn-out, and the loan carries interest at term SOFR plus 1.00% to 2.00%, a financing cost below operating income 📈 In return, hx is an existing partner and Guidewire expects at least 150 bps of added organic ARR growth from FY28 📅 Next: Guidewire updates full-year fiscal 2027 guidance, now $1,450M to $1,460M of ending ARR, on its next earnings call in December 2026 Source: PR Newswire release, Oct 27 + SEC 8-K, Oct 27

$GWRE announced that it entered into a definitive agreement to acquire Hyperexponential for a base purchase price of $1.7B in cash, subject to adjustments, and up to an additional $400M in contingent consideration based on achievement of specified recurring revenue targets. hyperexponential is a London-based agentic platform provider of AI-native underwriting and pricing software for commercial lines P&C insurers. hyperexponential is an existing Guidewire PartnerConnect Technology Alliance Partner. hyperexponential brings established trust and scale in underwriting, having powered underwriting decisions across more than $75B in annual commercial P&C premium for leading global insurers, reinsurers, and managing general agents. The acquisition is expected to accelerate ARR and revenue growth while remaining consistent with Guidewire's long-term margin targets. Guidewire expects to fund the transaction through $1B in new term loan financing and existing cash on hand.

$GWRE — Guidewire Software Cloud Transformation + Insurance Technology Guidewire is positioned in the ongoing digital transformation of the insurance industry. Its cloud platform and AI-driven software opportunities make it an interesting enterprise technology stock. Recent trading has shown renewed bullish interest, although volume confirmation is still important. SST TAKE: Cloud software exposure Insurance technology transformation AI integration potential Watch for continuation above near-term resistance

$GWRE I wanted to buy GWRE on the 2nd green brick but as you can see it gapped up on the open so we are going to have to pass on it.