Portuguese unicorn Sword Health has acquired Kaia Health in a $285 million transaction, expanding the reach of its AI Care platform to 100 million people.
In a statement, Sword said the acquisition of the digital health company, which specializes in musculoskeletal (MSK) and pulmonary care, reinforces its position as the “fastest-growing AI Care platform in the world.”
The company added that the deal will enable it to deliver “high-quality, scalable care” to new patient populations in the United States while entering the German market.
“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.
Following the acquisition, Sword Health will replace Kaia’s MSK solution in the U.S., with the company stating that the transition will be seamless for existing clients and members.
Kaia Health’s millions of American users will gain access to Sword Health’s expanded AI Care platform, ensuring continuity of care while providing what the company describes as market-leading clinical outcomes, engagement levels, and cost performance.
In Europe, Kaia Health’s solution is currently available through Germany’s digital health reimbursement pathway, which covers more than 70 million people nationwide.
Sword Health said it will build on Kaia’s established foundation in the country to strengthen its position within Europe’s largest healthcare system.
Kaia Health has enabled broad access to digital MSK care for millions of users in the U.S. through multiple long-standing partnerships. Sword Health said it will continue to support these populations and leverage Kaia’s existing relationships to expand access to its AI-driven care model.
Sword Health is advancing an AI-first approach to healthcare aimed at making high-quality care available anytime and anywhere, at scale, while reducing costs for insurers, self-insured employers, national health systems, and other healthcare organizations. Initially focused on physical health, the company is expanding into women’s and mental health services.
Since 2020, more than 700,000 members across have completed 10 million AI-powered sessions, helping Sword’s more than 1,000 enterprise clients avoid over $1 billion in unnecessary healthcare costs, according to the company.
Sword is backed by 43 clinical studies and holds more than 45 patents, and has raised more than $500 million from investors including Khosla Ventures, General Catalyst, Transformation Capital, and Founders Fund.
See also: Sword Health to invest €250M in Portugal to build global AI hub and scale operations
Featured image: Virgílio Bento, founder and CEO of Sword Health (Photo courtesy of Virgílio Bento/LinkedIn)
Portugal Startup News 