Sword Health to buy Headspace in cash deal slated for September 14

According to a recent regulatory filing, Sword Health, known for its AI-powered virtual physical-therapy offering, plans to purchase Headspace, the meditation and mental-health app, in a cash transaction. Headspace reported a “material change” to the Massachusetts Health Policy Commission on July 22, indicating that its parent company OrangeDot has agreed to the acquisition. The agreement, whose financial terms were not disclosed, is slated to become effective on September 14.

Sword Health, which raised $40 million in 2025 at a valuation exceeding $4 billion and has amassed $493 million in total funding, seeks to broaden its platform to include mental-health services. The deal was first identified by Healthcare Dealflow. No additional details were provided in the filing.