Private equity firm TPG (TPG.US) reportedly plans to sell healthcare software company Lyric, with a potential valuation of 5 billions USD

According to Golden Ten Data, sources reveal that private equity firm TPG (TPG.US) is exploring the sale of healthcare software company Lyric. According to the sources, the company generates approximately $250 million in annual EBITDA (earnings before interest, taxes, depreciation, and amortization). Based on a 20x valuation multiple, its valuation could typically reach $5 billion. The sources stated that TPG is working with JPMorgan’s investment bankers to explore a potential sale of Lyric. They cautioned, however, that there is no guarantee that the sale process will ultimately lead to a transaction for Lyric.

This move comes at a time when there are signs of a recovery in software industry deal activity. Earlier this year, concerns that artificial intelligence (AI) might disrupt the software sector had triggered a selloff across the segment. As deal activity rebounds, the market remains cautious about how much companies are truly worth, and to what extent even highly specialized software providers might be affected by the rapid evolution of this technology.

In 2022, TPG acquired ClaimsXten for approximately $2.2 billion. The business previously belonged to Change Healthcare but was divested to help alleviate antitrust concerns that could have impeded Change Healthcare’s $13 billion acquisition by UnitedHealth. TPG rebranded the company as Lyric the following year. Insurers such as UnitedHealth (UNH.US), CVS (CVS.US), and Humana (HUM.US) use Lyric to detect and prevent inaccurate healthcare claims payments.

TPG previously stated that since the acquisition, the company's revenue growth has accelerated significantly. While specific growth figures were not disclosed, TPG said that Lyric has benefited from the deployment of AI, and its data-rich business model will further amplify these advantages.

Nevertheless, some potential buyers of software companies are evaluating whether native AI competitors might eventually be able to perform many of the same functions at a lower cost. According to sources, this could undermine the financial assumptions used in valuing companies, including those in payment integrity and claims management technology.

The uncertainty in this sector is also reflected in market performance. The share price of smaller listed peer Claritev (CTEV.US) plummeted by 80% between September 2025 and this May, as investors worried that AI could disrupt software companies. Although the stock has since recovered somewhat, it remains below $38 per share, compared to $72 per share a year ago.