Guidewire Software Inc. said it has agreed to acquire Cyence, a software provider to property and casualty insurers, for approximately $275 million, or $265 million net of $10 million cash on hand.
Cyence uses data science and risk analytics to help property and casualty insurers better understand emerging risks like cyber, business interruption, which do not have "extensive claims history," Guidewire said in a news release.
The deal consideration will consist of about $140 million in cash and approximately 1.6 million newly issued Guidewire common shares. Of those shares, about 260,000 are in the form of deferred equity consideration, which are tied to the achievement of certain retention and operating milestones.
The deal is expected to close early in Guidewire's second fiscal quarter.