STAT+: Sword Health to acquire Headspace, according to filing

Sword Health, a digital health company known for its AI-powered virtual physical therapy, plans to acquire mental health company Headspace, according to a regulatory filing. The deal, effective September 14, involves a cash payment from Sword to Headspace's parent company OrangeDot, with the transaction value undisclosed. Sword Health, which raised $40 million in 2025 at a valuation over $4 billion, aims to expand into mental health.

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 https://masshpc.gov/sites/default/files/2026-08/20260806 Headspace-Sword MCN.pdf 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 https://healthcaredealflow.com/healthcare-dealflow-identifies-sword-healths-pending-acquisition-of-headspace/ 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 https://www.statnews.com/2025/02/04/health-tech-sword-scoop-doctors-and-ai-deepseek-china-open-ai-fda-physical-therapy/ . The company has raised a total of $493 million so far, according to PitchBook. This article is exclusive to STAT+ subscribers Unlock this article — and get additional analysis of the technologies disrupting health care — by subscribing to STAT+. Already have an account? Log in /login/ View All Plans https://www.statnews.com/stat-plus/