Sword Health, a digital health company known for its AI-powered virtual physical therapy offering, plans to acquire mental health company Headspace, according to a regulatory filing.
Headspace on July 22nd reported a “material change” to the Massachusetts Health Policy Commission indicating that its parent company, OrangeDot, proposes to be acquired by Sword for a cash payment. The deal will be effective September 14, according to the paperwork. The value of the transaction was not disclosed. (The paperwork was first identified by Healthcare Dealflow.)
Sword last raised $40 million in 2025 in a deal valuing the company over $4 billion, and the proposed deal comes as Sword health aims to expand its platform to more areas, including mental health. The company has raised a total of $493 million so far, according to PitchBook.
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