Sword Health to acquire Headspace in mental health expansion

Sword Health is set to acquire the mental health company Headspace as part of its expansion into behavioral health services. While the exact purchase price has not been officially disclosed, reports suggest the transaction could be valued between $200 million and $300 million. This represents a significant decrease from Headspace’s 2021 valuation of approximately $3 billion following its merger with Ginger Health.

The deal is expected to take effect on September 14. Public documents indicate that clinical services will not be reduced, though the combined company anticipates potential staff reductions in corporate roles where functions overlap.

Based in Portugal, Sword Health has previously focused on musculoskeletal care but has expanded into women’s health, cardiometabolic care, and mental health. The company utilizes an AI-powered platform and has identified mental health as a core component of its growth strategy ahead of a potential initial public offering in 2028.