NEW YORK, Sept. 9 — Private equity firm TPG (TPG.O) is exploring a potential sale of Lyric, a healthcare software company that supports payment processes across the healthcare industry, according to people familiar with the matter. The transaction could value Lyric at approximately $5 billion.
The potential sale comes as deal activity in the software sector begins to recover following concerns over the impact of artificial intelligence. Earlier this year, those concerns contributed to a broader selloff in software companies and created challenges for some mergers, acquisitions and initial public offering plans.
Despite the improving deal environment, investors and industry participants remain cautious about software valuations and the potential impact of rapid advances in artificial intelligence, even on highly specialized technology providers.
Healthcare insurers including UnitedHealth (UNH.N), CVS (CVS.N) and Humana (HUM.N) use Lyric’s software to help identify and prevent inaccurate or improper medical claim payments.
According to people familiar with the matter, TPG is working with investment banking firm JPMorgan Chase (JPM.N) on a potential sale of Lyric. The sources noted that discussions are still ongoing and there is no assurance that the process will result in a transaction. They requested anonymity because the discussions are private.
Lyric generates approximately $250 million in annual earnings before interest, taxes, depreciation and amortization (EBITDA), according to people familiar with the company. Based on a potential valuation multiple of around 20 times EBITDA, the business could be valued at approximately $5 billion.
AI DISRUPTION
TPG acquired ClaimsXten for approximately $2.2 billion in 2022. The business was previously part of Change Healthcare and was sold as part of efforts to address potential antitrust concerns surrounding Change Healthcare’s proposed $13 billion acquisition by UnitedHealth. TPG renamed the business Lyric the following year.
Since the acquisition, TPG has said Lyric has experienced a significant acceleration in revenue growth, although it has not disclosed specific figures. The investment firm also said Lyric has benefited from the adoption of artificial intelligence, with its extensive, data-rich operations expected to further enhance those benefits over time.
However, some potential buyers of software companies are evaluating whether AI-native competitors could eventually offer similar capabilities at a lower cost. Such developments could put pressure on the financial assumptions and valuations of companies operating in areas such as payment integrity and claims management, according to people familiar with the sector.
The uncertainty surrounding AI’s impact on software is also reflected in the performance of smaller publicly traded peer Claritev. Its shares fell about 80% between September 2025 and May 2026, as investors raised concerns that artificial intelligence could disrupt traditional software businesses. Although the stock has since recovered some of its losses, it remains below $38 per share, compared with around $72 a year earlier.
