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

Private equity firm TPG is considering the sale of Lyric, a healthcare software company specializing in payments, for approximately $5 billion, according to sources familiar with the matter. The potential sale comes amid a rebound in software dealmaking, which was impacted by doubts surrounding AI-driven disruption earlier this year.

Concerns persist about the value of specialized software providers as AI technology rapidly evolves. Lyric assists insurers like UnitedHealth, CVS, and Humana in detecting and stopping erroneous medical claims payments.

TPG is collaborating with investment bankers from JPMorgan Chase on the potential sale. However, there is no assurance that the process will result in a deal for Lyric. The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) amount to about $250 million, which could justify a valuation of $5 billion using a 20 times multiple.

TPG acquired the claims-focused firm ClaimsXten for roughly $2.2 billion in 2022, which was a part of Change Healthcare before being sold to help alleviate potential antitrust obstacles that threatened to derail Change Healthcare's $13 billion acquisition by UnitedHealth. The business underwent a rebranding to Lyric the following year and experienced a significant acceleration in revenue growth since then, although the extent of the growth remains undisclosed.

Lyric's rapid growth can be attributed to the deployment of AI, and its dataset-rich business would further amplify these benefits.

Despite this positive trend, some potential buyers of software companies are assessing whether AI-native competitors could ultimately deliver similar services at a lower cost, potentially undermining the financial assumptions used to value these companies. This uncertainty has led to a sharp decline in the stock price of a smaller public peer, Claritev, which plummeted by 80% between September 2025 and May of this year as investors grew apprehensive about AI's impact on software companies.