Sword Health announced on January 28 that it entered into an agreement to acquire Kaia Health. According to the press release, the transaction is valued at $258 million.
Founded in 2016, Kaia Health is a leading digital therapeutics company that creates evidence-based treatments for a range of disorders, including musculoskeletal conditions and COPD. Kaia Health uses innovative technologies, including artificial intelligence and computer vision, and collaborates with medical experts to develop an interdisciplinary digital approach. It has offices in Munich, Germany and New York City.
Sword Health’s solutions combine AI and clinical expertise to deliver pain-fighting care without the need for opioids or unnecessary surgeries. Starting with physical pain, then pelvic health, and now a full platform of solutions, Sword is available through more than 25,000 employers, health plans and public sector organizations. To date, the company has saved its clients more than $650 million in unnecessary healthcare costs.
The acquisition allows Sword to scale its presence in the United States and bring its physical therapy platform to the German market. This is its first deal of 2026.
According to data captured in the LevinPro HC database, this transaction represents the 28th eHealth acquisition of the year, and the first in the care coordination subsector. There were seven care coordination transactions announced in 2025, and six announced in 2024.
