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

Private equity firm TPG is contemplating the sale of healthcare software company Lyric, with an estimated value of approximately $5 billion, according to sources familiar with the situation. This follows a recent recovery in software dealmaking activity, which was initially hampered by concerns over artificial intelligence's disruptive potential.

Insurers such as UnitedHealth, CVS, and Humana rely on Lyric to identify and prevent erroneous medical claims payments. The company reportedly generates around $250 million in annual earnings before interest, taxes, depreciation, and amortization, which could justify a $5 billion valuation using a 20 times multiple. TPG is currently collaborating with JPMorgan Chase to potentially facilitate the transfer of Lyric.