Artificial intelligence-powered XRHealth has acquired behavioral health digital therapeutics (DTx) company RealizedCare. The deal marks the third acquisition for XRHealth in as many years.

Behavioral health DTx companies have faced considerable challenges in recent years, including Pear Therapeutics’ notable bankruptcy. Despite the historic turmoil, XRHealth is looking to the RealizedCare deal to add chronic pain and behavioral health treatments to its offerings, as well as a new triage tool.

“With the integration of RealizedCare’s groundbreaking triage tool and therapeutic solutions, we are building the world’s largest XR healthcare platform,” Eran Orr, CEO of XRHealth, said in a statement. “By merging the power of mixed reality, extended reality, and AI-driven insights, we are forging a new era of immersive, value-based care. This transformative approach will expand global access to high-quality therapy, empower clinicians with unparalleled tools, and ultimately reshape the way patients experience and engage with their own healing journey.”

Needham Heights, Massachusetts-based XRHealth creates AI-based health care technology with several applications, including mental health, physical therapy, cognitive rehabilitation, pain management and mental health. According to XRHealth, its products enable value-based care delivery.

Outcome Capital was a strategic and financial advisor for XRHealth’s acquisition of RealizedCare.

Elizabethtown, Kentucky-based RealizedCare creates digital therapeutics for mental health challenges and chronic pain. The company uses a “groundbreaking” AI triage tool to determine the most effective course of digital interventions and when to escalate cases to clinicians. RealizedCare was formed in 2023 through the merger of DTx company BehaVR and virtual chronic pain management company Fern Health.  The company then acquired another VR company, Oxford VR, in 2022. 

RealizedCare founder and CEO Aaron Gani will stay on with the newly merged company as general manager of XRHealth U.S.

“We are thrilled to become a part of XRHealth’s groundbreaking digital therapeutics platform,” Gani said in a statement. “By integrating our triage tool with XRHealth’s cutting-edge XR and mixed reality capabilities, we can expand access to evidence-based, value-based care solutions, helping more individuals manage chronic pain, and mental health conditions.”

The RealizedCare acquisition is the latest of several companies to merge with XRHealth.

In November, XRHealth acquired NeuroReality, whose flagship product is a VR-based video game classified as a Class 1 medical device for patients with conditions including strokes, long COVID-19 and traumatic brain injuries. In April 2023, XRHealth acquired Amelia Virtual Care, a virtual reality platform designed for mental health professionals.