Sword Health announced it has acquired Kaia Health in a transaction valued at $285 million, adding Kaia’s digital health footprint in musculoskeletal and pulmonary care while expanding Sword’s reach in the United States and establishing a foothold in Germany.
The company positioned the acquisition as a scale move for its AI Care platform, aiming to bring its programs to new member populations in the U.S. and to enter Germany through Kaia’s existing presence in the country’s digital health reimbursement pathway, which the company said covers more than 70 million people.
In the United States, Sword said it will replace Kaia’s MSK solution and transition Kaia’s U.S. clients and members onto Sword’s platform. The company said Kaia’s millions of American members will gain access to Sword’s broader AI Care offering as it works to maintain continuity of care during the changeover.
In Europe, Sword said it plans to build on Kaia’s established foundation within Germany’s healthcare system. The company framed Germany as a major new market, citing the reimbursement pathway as a channel for broader coverage and adoption.
Sword also pointed to Kaia’s partnerships that have helped scale access to digital MSK care in the U.S., saying it intends to leverage those relationships to expand access to what it described as advanced AI-driven care.
Sword described its broader strategy as shifting healthcare toward an AI-first model, beginning with physical health and expanding into women’s and mental health. The company said that since 2020, more than 700,000 members across three continents have completed 10 million AI sessions and that its enterprise client base exceeds 1,000 organizations. It added that it has raised more than $500 million from investors, including Khosla Ventures, General Catalyst, Transformation Capital, and Founders Fund.
KEY QUOTE:
“This acquisition will accelerate our already rapid growth in the United States while also opening Germany as a major new market, in our mission of democratizing, through AI, access to high-quality care all over the world. We’re excited to work with Kaia’s clients and partners, further expanding our presence in the U.S. market.”
Virgilio Bento, Founder & CEO of Sword
