TPG is exploring a $5 billion sale of Lyric healthcare software
Private equity firm TPG is in talks to sell its stake in Lyric for around $5 billion, following a slight recovery in software dealmaking after earlier market worries. Investment bankers at JPMorgan Chase are involved in the process.
Sources state that private equity firm TPG is exploring the sale of healthcare software company Lyric for approximately $5 billion. People close to the discussions indicated that the company generates roughly $250 million in annual earnings before interest, taxes, depreciation and amortization, which typically supports a valuation multiple of twenty. The potential deal involves investment bankers at JPMorgan Chase working alongside TPG on the transaction structure. While TPG recently acquired ClaimsXten for about $2.2 billion earlier in 2022 to help manage antitrust concerns within the industry, current discussions focus specifically on Lyric. Insurance providers such as UnitedHealth, CVS and Humana utilize Lyric to identify and prevent inaccurate medical claim payments. These sources cautioned that no guarantee exists regarding a final sale agreement for Lyric.
