Sword Health is buying Headspace. The buyer runs AI-guided virtual physical therapy programs. The seller operates a widely used meditation and therapy app.
OrangeDot, Headspace’s owner, told Massachusetts regulators about the proposed all-cash takeover on July 22. The deal is set to close September 14, and neither company has made the price public.
Sword raised $40M in 2025, which pushed its valuation past $4B. PitchBook puts its lifetime funding near $493M, and the Healthcare Dealflow newsletter flagged the filing first.
The purchase takes Sword beyond joint and muscle care into mental health. Employers and health plans use its AI exercise programs for back, knee and hip pain. Headspace brings a consumer meditation app and a growing clinical therapy arm.
It ranks among the bigger digital health deals of the year, part of a wave of consolidation as AI-driven virtual care platforms broaden their reach.
