Private equity firm TPG is exploring a sale of Lyric, a software company that helps insurers identify and prevent inaccurate medical claims payments, in a process that could value the business at about $5 billion. TPG is working with investment bankers at JPMorgan Chase, although people close to the discussions cautioned that the process may not result in a transaction. Lyric generates about $250 million in annual EBITDA (earnings before interest, taxes, depreciation and amortization), implying a valuation of roughly 20 times EBITDA. TPG acquired the business, then known as ClaimsXten, for about $2.2 billion in 2022 and rebranded it Lyric the following year. The potential sale comes as software dealmaking shows signs of recovery, while buyers remain concerned that AI-native competitors could perform specialized functions more cheaply and weaken valuation assumptions. Lyric serves insurers including UnitedHealth, CVS and Humana. TPG has said Lyric’s revenue growth accelerated significantly after the acquisition and that its data-rich business benefited from AI deployment, though it has not disclosed the size of that growth. TPG and JPMorgan Chase declined to comment, while Lyric did not immediately respond to a request for comment. Claritev, a smaller public peer, fell 80% between September 2025 and May this year as investors worried about AI disruption, although its shares have since recovered; they remain below $38, compared with $72 one year ago.