Guidewire Software, a provider of platform services for property and casualty insurers, has entered into a definitive agreement to purchase Hyperexponential, a company specializing in pricing decision intelligence. The transaction is valued at $1.7 billion and will be settled entirely in cash.

The acquisition is part of a broader industry trend toward integrating artificial intelligence into insurance workflows. According to the announcement, the primary objective of the deal is to deploy AI agents that can assist human underwriters in complex decision-making processes, including risk analysis and policy pricing. By combining Hyperexponential’s specialized software with Guidewire’s infrastructure, the company intends to streamline how insurers evaluate and price risk.

The deal is currently subject to customary regulatory approvals and closing conditions. Both companies anticipate that the transaction will be finalized sometime in 2025. While the financial terms have been disclosed as a cash-based transaction, specific details regarding the integration timeline for existing customers of both platforms have not yet been fully outlined. The move represents a significant investment by Guidewire to bolster its technological offerings in the competitive insurance-tech sector.