Sword to acquire Headspace

Digital healthcare company Sword has agreed to acquire mental health platform Headspace , expanding its AI Care offering beyond physical pain, women’s health and cardiometabolic care.

Headspace has reached more than 100 million people across 200 countries and is offered through more than 20,000 employers. Its services include mindfulness and sleep content, an employee assistance program, care navigation, psychiatry and access to a network of more than 15,000 providers. Partners include Cigna Healthcare, Kaiser Permanente and the NBA.

Sword plans to integrate its AI technology into Headspace to provide more personalized support, identify members’ needs earlier and connect them with clinicians when appropriate. Sword launched its own mental health offering last year and says its broader platform has treated more than one million patients.

Headspace has raised approximately $321 million across 12 funding rounds, including $105 million in debt financing from Oxford Finance in 2023. The acquisition also follows a difficult period internally: Headspace holds a 2.4-out-of-five rating on Glassdoor.

The transaction is expected to close by the beginning of the fourth quarter of 2026, subject to customary closing conditions. Financial terms were not disclosed.