TPG Explores Sale of Healthcare Software Firm Lyric for up to $5 Billion, Sources Say

Private equity firm TPG is exploring a sale of its healthcare software company, Lyric, in a potential deal that could value the business at approximately $5 billion, according to people close to the discussions. The firm is reportedly working with investment bankers at JPMorgan Chase on the process.

Deal Valuation

Sources, who spoke on the condition of anonymity, indicated that a sale is being considered but is not guaranteed to proceed. The potential $5 billion valuation is based on Lyric's annual earnings before interest, taxes, depreciation, and amortization (EBITDA) of about $250 million, implying a valuation multiple of 20 times EBITDA.

Lyric provides software that helps major health insurers like UnitedHealth, CVS, and Humana identify and prevent inaccurate medical claims payments. TPG and JPMorgan declined to comment on the matter, and Lyric did not immediately respond to a request for comment, according to Reuters.

Background and Context

TPG acquired the business, then known as ClaimsXten, for approximately $2.2 billion in 2022. The unit was divested from Change Healthcare to help secure antitrust approval for Change's $13 billion acquisition by UnitedHealth. TPG rebranded the company as Lyric in 2023.

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Since the acquisition, TPG has stated that Lyric has experienced a significant acceleration in revenue growth, partly driven by the deployment of artificial intelligence. The firm has suggested that Lyric's data-rich business model is well-positioned to capitalize on further AI advancements.

Market Headwinds

The potential sale comes as software dealmaking shows signs of a rebound after a sector-wide selloff earlier in the year, which was triggered by concerns over disruption from AI. Despite the recovery, some prospective buyers remain cautious about how AI could impact valuations for specialized software providers.

Investors are assessing whether new, AI-native competitors could perform similar functions more cheaply, potentially undermining the financial models of established companies in the claims management technology space. As an example of market uncertainty, the source noted that stock in smaller public peer Claritev fell 80% between September 2025 and May 2026 amid investor concerns about AI's impact on software firms.