Grindr Inc. said on September 30, 2026 that it has agreed to acquire PurposeMed Inc., the parent company of telehealth PrEP provider Freddie, for $250 million in cash and stock. The company described the transaction as its first major acquisition since its founding.
Terms of the deal
Under the agreement, Grindr said it will pay $250 million for PurposeMed, consisting of $190 million in cash and $60 million in Grindr common stock. The company said the deal also includes up to $70 million in additional cash consideration tied to 2027 performance targets, payable in 2028.
Grindr said the transaction has been approved by the boards of both companies and is expected to close in the fourth quarter of 2026, subject to applicable closing conditions. The purchase includes the Freddie brand and its partnerships with affiliated clinical networks.
According to Grindr, Freddie expects to generate 2026 revenue of more than $80 million and more than $10 million in Adjusted EBITDA, a non-GAAP measure the company defines in the release. Grindr said it expects the acquisition to have an immaterial impact on its 2026 financial results and will give more detail on its 2027 outlook on its third-quarter earnings call in November.
What Grindr plans to build
Grindr said the deal accelerates Grindr Health, its health and wellness business, and will let users learn about PrEP, connect with clinicians, access testing and prescriptions, and receive medication through the Grindr app. The company said the acquisition advances a commitment to connect 10 million LGBTQ+ people globally to HIV prevention directly through the app by 2028.
The company said it will bring Freddie together with Woodwork, its performance-medication offering, into a single Grindr Health experience covering three steps: learning about PrEP and beginning an assessment, meeting with a clinician and arranging testing and prescriptions, and staying on care through delivery, refills, reminders and messaging with a care team.
Grindr said participation will be entirely voluntary, with users free to choose whether to access care through Freddie and Freddie patients free to choose whether to use Grindr. Freddie's leadership team will join Grindr, according to the release.
The companies' claims about Freddie
Grindr said Freddie was founded in Canada in 2020, has helped more than 55,000 patients in Canada and the United States access PrEP, and now serves patients in all 50 US states and the District of Columbia. Freddie estimates its patients' PrEP use prevents approximately 385 new HIV transmissions each year, saving Canadian and US healthcare systems a combined $270 million to $580 million in future treatment costs annually, according to the release.
Grindr said PrEP reduces the risk of HIV by approximately 99% and that about 650,000 people in the US are on PrEP today, compared with an estimated 2.2 million who could benefit. The company said PrEP use among gay and bisexual men in the US is growing by roughly 10% a year.
Grindr CEO and Chairman George Arison said: "The challenge is connecting people to PrEP and helping them stay on it. Grindr has a direct line to millions of gay men, and Freddie brings the medical expertise to turn that reach into care." Dr. Husein Moloo, co-founder and CEO of PurposeMed and Freddie, said: "No one reaches the Freddie community like Grindr does."
Risks flagged in the filing
In forward-looking statements accompanying the announcement, Grindr listed risks including that the acquisition may not be completed in a timely manner or at all, potential litigation or regulatory action, and challenges integrating PurposeMed's business, operations and personnel.
The company also cited risks of operating in healthcare, including compliance with telehealth, pharmacy and privacy rules such as HIPAA and Canadian and US state health privacy laws, new privacy risks arising from the integration, and its ability to protect systems from cyber-attacks and unauthorized data access, including with respect to patient health information.
Key facts and where they come from
- Grindr agreed to acquire PurposeMed, parent of Freddie, for $250 million in cash and stock.
it has agreed to acquire PurposeMed Inc., the parent company of Freddie, a leading telehealth provider of PrEP and HIV prevention care, for $250 million in cash and stock
- The consideration is $190 million cash and $60 million in Grindr stock.
consisting of $190 million in cash and $60 million in Grindr common stock
- Up to $70 million more in cash is tied to 2027 performance targets, payable in 2028.
the potential for up to $70 million in additional cash consideration tied to 2027 performance targets, payable in 2028
- The deal is expected to close in Q4 2026, subject to closing conditions.
is expected to close in Q4 2026, subject to applicable closing conditions
- This is Grindr's first major acquisition since its founding.
This marks Grindr's first major acquisition since its founding
- Freddie expects 2026 revenue above $80 million and more than $10 million in Adjusted EBITDA.
Freddie expects to generate 2026 revenue of more than $80 million and more than $10 million in Adjusted EBITDA.
- Grindr expects the deal to have an immaterial impact on its 2026 results.
Grindr expects the acquisition to have an immaterial impact on its 2026 financial results
- Freddie has served more than 55,000 patients and operates in all 50 US states.
Freddie has since helped more than 55,000 patients in Canada and the United States access PrEP and now serves patients in all 50 US states
- Grindr says use of the health service will be voluntary for users and patients.
participation will be entirely voluntary: Grindr users can choose whether or not to access care through Freddie
- Grindr says it serves nearly 16 million average monthly active users.
Grindr serves nearly 16 million average monthly active users in virtually every country in the world