TPG is reported to be exploring a potential sale of healthcare payments software company Lyric that could value the business at about $5 billion, with JPMorgan Chase working on the possible transaction.
The sale process remains uncertain, with people close to the discussions cautioning that there is no guarantee it will result in a deal. Lyric generates about $250 million of annual earnings before interest, taxes, depreciation and amortization, or EBITDA. A 20 times multiple could put the business at a valuation of $5 billion.
Lyric provides technology used by insurers including UnitedHealth, CVS and Humana to identify and prevent inaccurate medical claims payments. The potential transaction comes as software dealmaking shows signs of recovery following a selloff earlier this year driven by concerns about disruption from artificial intelligence.
The recovery in activity has not removed uncertainty over software valuations. Prospective buyers are assessing the extent to which rapid advances in AI could affect specialist software providers, including whether AI-native competitors could eventually perform many of the same functions at lower cost. That possibility could affect the financial assumptions used to value payment-integrity and claims-management technology companies.
TPG's investment in the business dates to 2022, when it acquired ClaimsXten for about $2.2 billion. ClaimsXten had been part of Change Healthcare and was sold to help address potential antitrust hurdles threatening Change Healthcare's $13 billion acquisition by UnitedHealth. TPG rebranded the business as Lyric the following year.
TPG has previously said Lyric experienced a significant acceleration in revenue growth following the acquisition, although the size of that growth has not been disclosed. The investment firm has also said Lyric benefited from the deployment of AI and that its dataset-rich business would compound those benefits.
The contrasting assessment of AI is central to the valuation question surrounding the potential transaction. TPG has identified benefits from deploying the technology at Lyric, while some prospective software buyers are considering the possibility that AI-native competitors could ultimately provide comparable functions more cheaply.
Claritev illustrates the wider uncertainty affecting the sector. Shares in the smaller publicly traded peer fell 80% between September 2025 and May this year as investors worried about AI disruption to software companies. The stock subsequently recovered but was still trading below $38 per share, compared with $72 per share one year ago.
The potential Lyric sale therefore remains an uncompleted process rather than an agreed transaction. The reported $250 million of annual EBITDA and 20 times multiple provide the financial parameters behind the possible $5 billion valuation, while the eventual outcome remains dependent on whether the sale process produces a deal.
