Sword Health Acquires Kaia Health for $285 Mn to Accelerate AI-First Care in the U.S. & Germany

According to Sword Health, this move will consolidate client relationships while offering members access to a broader suite of AI-powered services.

Sword Health has acquired Kaia Health, a digital therapeutics company focused on musculoskeletal and pulmonary care, in a transaction valued at USD 285 Mn, strengthening its AI-first care model and deepening its presence in the U.S. and entering Germany at scale.

Founded over a decade ago, Kaia Health built its reputation in digital musculoskeletal therapy and later expanded into pulmonary care, operating primarily across the United States and Germany. Its most valuable European asset has been its inclusion in Germany’s digital health reimbursement pathway, which enables approved digital therapies to be prescribed and reimbursed under the public health system.

This framework provides access to more than 70 million insured individuals, making Germany one of the most attractive yet difficult digital health markets to enter.

In the United States, Sword Health plans to transition Kaia’s American members onto its own AI Care platform. According to them, this move will consolidate client relationships while offering members access to a broader suite of AI-powered services.

Sword’s platform combines artificial intelligence with licensed clinicians to deliver personalized care remotely, with the company emphasizing automation, scalability and real-time monitoring as key advantages.

“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,” said Virgilio Bento, founder and CEO of Sword Health, in a statement. “We’re excited to work with Kaia’s clients and partners, further expanding our presence in the U.S. market.”

“Joining Sword Health represents a powerful next chapter for the mission we’ve spent over a decade building,” said Adam Pellegrini, CEO of Kaia Health. “We share a common vision: using technology to democratize access to high-quality care. By becoming part of Sword, we can significantly expand our impact for the millions of patients who rely on Kaia today.”

Sword Health has raised more than USD 500 Mn from investors, including General Catalyst, Khosla Ventures, Transformation Capital and Founders Fund, and was valued at around USD 4 Bn following a USD 40 Mn investment last year.

In recent months, Sword has also launched AI care manager agents under a new division, Sword Intelligence, aimed at automating administrative and operational tasks across the healthcare system.

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