TPG Explores $5B Sale of Healthcare Software Firm Lyric

Private equity firm TPG is exploring a sale of healthcare software provider Lyric in a process that could value the company at about $5 billion, according to an Investing.com report. The potential divestiture tests software dealmaking appetite while navigating broader industry questions regarding artificial intelligence disruption across enterprise technology sectors.

TPG has enlisted investment bankers at JPMorgan Chase to advise on the possible transaction, though sources familiar with the matter cautioned that deliberations remain preliminary and no guarantee of a final agreement exists.

Valuation Metrics and Earnings

Lyric generates approximately $250 million in annual earnings before interest, taxes, depreciation, and amortization. That financial performance could support a $5 billion valuation based on a 20 times multiple of EBITDA.

The healthcare software provider operates in a specialized segment of health administration. Major health insurers including UnitedHealth Group, CVS Health, and Humana hire Lyric to identify and prevent inaccurate medical claims payments before disbursements occur.

Origins From Change Healthcare Divestiture

TPG originally acquired the asset as ClaimsXten for about $2.2 billion in 2022. The acquisition was executed during the Department of Justice's antitrust scrutiny of UnitedHealth's broader purchase of Change Healthcare, requiring divestitures to clear regulatory hurdles.

Following the carve-out, TPG rebranded the business as Lyric in 2023. A potential $5 billion sale would more than double the private equity firm's initial acquisition capital within a four-year holding period, underscoring strong demand for critical healthcare administrative technology despite broader macro and tech-sector headwinds.