Exclusive: Sword Health buys U.K.-based Surgery Hero for global expansion

Sword Health, a digital musculoskeletal (MSK) care company, acquired U.K. peer Surgery Hero in an all-equity transaction, CEO Virgílio Bento tells Axios exclusively.

Why it matters: It's the first of several expected acquisitions this year for the health tech unicorn.

What's next: "There are lots of good assets in the market and we expect to do a couple of more strategic acquisitions in 2025," Bento says.

• "I believe that there are lots of high-valued companies that, given the more challenging financing environment, are not getting the next round of funding, which opens them up to have acquisition conversations," he says.

What we're watching: Last year, Bento told Axios the company was angling for a 2H25 or 1H26 listing. He declined to give an update on IPO timing, saying only, "We don't need to raise any more funding ever."

How it works: London-based Surgery Hero offers digital support for patients undergoing surgery, helping them prepare, recover and return to normal life.

• Surgery Hero customers include 18 NHS trusts (hospital providers), with access to 10 million NHS patients.
• NYC-based Sword's offerings are sold to employers, health plans, and public sector organizations and it connects members with physical therapists 24/7 as needed.
• The AI care company leverages computer vision and wearable technology to monitor movement, prevent injury and capture data during exercise, as well as educational content.

The big picture: The virtual physical therapy sector continues to be active amid promising new outcomes data.

• There have been at least seven deals in the virtual MSK space since 2021, and Sword is the second virtual PT company to hint at an IPO.

Catch up quick: Sword has raised just north of $300 million, and was valued at $3 billion as of June 2024.

• Bento declined to comment on profitability for this report, though he told Axios last year that the company expected to hit break-even by end of 2024.