Guidewire has agreed to acquire insurance technology startup Hyperexponential for $1.7 billion in cash, TechCrunch reported. The transaction is expected to close next year and is valued at about $2 billion when potential additional payments are included.

Guidewire said the acquisition will help bring AI agents into insurance underwriting, analysis and pricing workflows, where they would work alongside human employees. Up to $400 million in additional capital is reserved if specified revenue targets are reached.

Founded in 2017, the U.K.-based Hyperexponential has raised nearly $90 million from investors including Andreessen Horowitz and Battery Ventures, according to TechCrunch and PitchBook data cited by the outlet. Hyperexponential says its software is used by nearly 600 insurers across 40 countries.