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

Sword Health, a digital health company specializing in AI-powered virtual physical therapy, has agreed to acquire mental health company Headspace, according to a regulatory filing. Headspace reported a "material change" to the Massachusetts Health Policy Commission on July 22, indicating that its parent company, OrangeDot, proposes to be acquired by Sword in a cash transaction. The deal is effective Sept. 14; the value was not disclosed.

Sword last raised $40 million in 2025 at a valuation above $4 billion, and has raised $493 million total per PitchBook. The acquisition is part of Sword Health's push to expand its platform into additional areas, including mental health.