New York–based Sword Health has acquired Kaia Health in a $285 million deal, strengthening its push to scale AI-driven care in the US and marking its entry into the German healthcare market.
The acquisition brings together two companies focused on digital care for musculoskeletal (MSK) conditions, with Kaia also offering pulmonary care programs. Sword said the deal supports its goal of making high-quality care more accessible through AI, while expanding into new patient populations.
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 democratising, 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,” says Virgilio Bento, Founder & CEO of Sword.
What changes in the US?
Following the acquisition, Sword will replace Kaia’s MSK solution in the US. Existing Kaia clients and members will be transitioned to Sword’s AI Care platform, giving millions of users access to its broader set of tools.
Sword said the move is designed to ensure continuity of care while improving outcomes, engagement, and cost efficiency.
Kaia has built a large US presence through partnerships with employers and health plans. Sword plans to continue supporting these members while using Kaia’s relationships to expand access to its AI-based programs.
Additionally, the deal also gives Sword a foothold in Germany, Europe’s largest healthcare market. Kaia’s solution is already available through Germany’s digital health reimbursement pathway, which covers more than 70 million people. Sword said it will build on Kaia’s existing position to grow its presence in the country and across Europe.
A larger AI care platform
Sword Health is positioning itself as an AI-first healthcare company, starting with physical health and expanding into women’s and mental health. Since 2020, more than 700,000 members across three continents have completed 10 million AI-guided sessions on the platform.
The company works with over 1,000 enterprise clients and says its programs have helped avoid more than $1 billion in unnecessary healthcare costs. Sword has raised over $500 million from investors, including Khosla Ventures, General Catalyst, Transformation Capital, and Founders Fund.
With the Kaia acquisition, Sword is betting that combining scale, clinical evidence, and AI-driven delivery will help it grow faster in the US while establishing a strong base in Europe.
