Sword Health acquires Kaia Health in $285m deal, expanding US footprint and entering German market
Strengthens push into women’s digital care
AI health company Sword Health has acquired joint and muscle care company Kaia Health in a deal valued at $285m, strengthening its position in AI-enabled care and giving the company a significant foothold in Germany’s publicly reimbursed digital health market.
The acquisition expands Sword’s reach to around 100 million people globally and marks its formal entry into Germany, Europe’s largest healthcare system. Sword said the deal would accelerate its growth in the United States while opening access to a market where more than 70 million people are covered by statutory health insurance.
While the transaction is primarily focused on musculoskeletal (MSK) and pulmonary care, it also intersects with women’s health, an area Sword has identified as a strategic priority. MSK conditions disproportionately affect women, particularly during pregnancy, midlife and older age, and are a leading cause of chronic pain and disability. Access to scalable, reimbursed digital care in this area has been uneven, especially outside the US.
“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 & CEO of Sword Health.
“We’re excited to work with Kaia’s clients and partners, further expanding our presence in the U.S. market.”
Digital MSK
Kaia Health, founded in Munich, is best known for its digital MSK programmes. In Germany, its solution is reimbursed through the country’s digital health applications pathway, which allows approved digital therapeutics to be prescribed and paid for by statutory health insurers. That pathway remains one of the few national reimbursement mechanisms in Europe for digital MSK care.
Sword said it would build on Kaia’s existing presence in Germany, using the acquisition as a platform for further expansion in the country. The company did not say whether it plans to seek reimbursement for additional conditions under the German system.
In the US, Sword will replace Kaia’s MSK offering with its own AI-enabled care platform. Existing Kaia clients and members will be transitioned to Sword’s system, which the company says delivers stronger clinical outcomes, higher engagement and lower costs for employers and insurers. Kaia has reached millions of American members through partnerships with employers and health plans.
Sword began as a digital physical therapy provider and has expanded more recently into women’s and mental health. The company positions its platform as a way for employers, insurers and health systems to offer more continuous care across conditions, rather than relying on multiple point solutions.
The deal comes amid continued consolidation in digital health, particularly in MSK care, where crowded markets and pressure from employers to demonstrate measurable outcomes have pushed companies towards scale and acquisition.
Sword said it would continue supporting Kaia’s existing partnerships in the US, using those relationships to extend access to its AI-based care. No immediate changes to staffing were announced.
Financial terms beyond the $285m valuation were not disclosed. The acquisition is expected to close subject to customary conditions.