Exclusive-TPG explores $5 billion sale of healthcare software company Lyric, sources say

In New York on September 9, Reuters reported that private equity firm TPG is investigating a potential divestiture of Lyric, a software company specializing in healthcare payment support. According to individuals familiar with the deliberations, such a process could place a valuation of nearly $5 billion on the business.

This development occurs as software-related dealmaking exhibits signs of revival, following an earlier downturn in the software sector this year triggered by concerns over artificial intelligence disruption.

Notwithstanding the uptick in activity, uncertainty persists regarding business valuations and the degree to which even highly niche software providers might be impacted by the swift advancement of AI technology.

Lyric's clientele comprises insurers such as UnitedHealth, CVS, and Humana, who employ the company's services to identify and prevent erroneous medical claim payments.

Sources indicate that TPG is collaborating with investment bankers from JPMorgan Chase on a possible sale of Lyric. These sources, who requested anonymity because the discussions are confidential, cautioned that there is no certainty the sale process will result in a agreement for Lyric.

According to the sources, the company generates roughly $250 million in annual EBITDA, a figure that, when applying a typical 20 times multiple, could support a valuation of about $5 billion.

Both TPG and JPMorgan declined to comment, while Lyric did not immediately respond to a request for comment.

TPG previously acquired ClaimsXten for approximately $2.2 billion in 2022. That business was originally part of Change Healthcare, but was divested to help resolve potential antitrust issues that could have blocked UnitedHealth's $13 billion acquisition of Change. The following year, TPG rebranded the entity as Lyric.

The investment firm has stated that since that acquisition, Lyric has achieved a substantial acceleration in revenue growth, although the exact pace has not been disclosed. TPG has also highlighted that Lyric has gained from AI deployment, and that its data-rich operations would amplify those gains.

Nevertheless, some prospective buyers of software companies are evaluating whether AI-native rivals could ultimately execute many of the same functions at lower cost. This could weaken the financial assumptions underpinning valuations for technology firms in sectors such as payment integrity and claims management, the sources noted.

Shedding light on market uncertainties, shares of smaller public peer Claritev plunged 80% between September 2025 and May of this year, as investors worried about AI disruption to software businesses. While the stock has recovered somewhat since then, it continues to trade under $38 per share, a marked decline from $72 per share a year ago.