By Modupe Gbadeyanka
A provider of software products to Property and Casualty (P&C) insurers, Guidewire Software, and Cyence, have announced plans to enter into a definitive agreement for Guidewire to acquire Cyence.
Cyence is a software company that applies data science and risk analytics to enable P&C insurers to grow by underwriting “21st century risks” that have gone underinsured or uninsured.
These emerging risks — including cyber, reputation, and new forms of business interruption risk — pose unique challenges for insurers. Evolving rapidly, they typically lack extensive claims history to inform insurers’ underwriting and pricing determinations. Their complexity and non-obvious patterns of risk linkage and risk accumulation require more diverse and dynamic data sets to be modelled effectively.
To meet this challenge, Cyence offers a data listening and risk analytics solution combining Internet-scale collection and curation of external data with sophisticated machine learning and risk modelling, which supports insurers’ product management, actuarial, underwriting, and enterprise risk management functions.
“Cyence is an exceptional technology company that, like Guidewire, focuses on serving the strategic needs of the P&C industry,” said Marcus Ryu, co-founder and CEO, Guidewire Software. “While Guidewire has focused on core operations, data management, and digital engagement, Cyence applies expertise in data science and machine learning to the modelling needs of insurance product design, pricing, and underwriting for 21st century risks. As traditional actuarial approaches struggle to address the unique characteristics of emerging risks like cyber, Cyence’s next-generation approach will enable insurers to broaden the scope and value of the products their policyholders need.”
“Cyence started applying our data science engine to cyber risk given the significant demand from the insurance industry on what is an existential threat for their insureds. We look forward to joining Guidewire and continuing our mission to enable insurers to enter new markets by insuring emerging risks like cyber,” said, Arvind Parthasarathi, co-founder and CEO, Cyence. “We are excited by the opportunity to power our approach with operational data and policy lifecycle support from Guidewire’s core systems and to join forces with the technology leader serving the P&C insurance industry.”
Total consideration for the acquisition is approximately $275 million, or $265 million net of $10 million cash on hand, subject to customary transaction adjustments. Consideration provided at closing will consist of net cash of approximately $140 million and approximately 1.6 million shares of newly issued Guidewire common stock. Of those shares, approximately 260,000 are in the form of deferred equity consideration, which are subject to the achievement of certain retention and operating milestones.
more recommended stories
Zoom Generates $328.2m Revenue
By Adedapo Adesanya Video conferencing platform,.
Ex-Diamond Bank CEO Uzoma Dozie Launches Sparkle
By Adedapo Adesanya Former Chief Executive.
Pantami Lauds ICT Sector’s 14.1% Contribution to GDP
By Adedapo Adesanya The Minister of.
MainOne, World Bank to Deliver Connectivity in Burkina Faso
West Africa’s premier connectivity and data.
16% Nigerians Under Mobile Malware Attacks in Q1 2020
By Adedapo Adesanya Sixteen percent of.
COVID-19: MTN Nigeria Subscribers Send Over 2 billion Free SMS
By Modupe Gbadeyanka Leading telecommunications company.
ATCON Praises Governors for New RoW Charges
By Adedapo Adesanya The Association of.
Ekiti Implements New RoW Charges of N145
By Adedapo Adesanya Ekiti State has.