Grindr has agreed to acquire PurposeMed, the parent company of virtual HIV-prevention platform Freddie, in a transaction with an upfront base purchase price of $250 million. The deal represents Grindr’s first major acquisition since its founding in 2009 and is expected to close in the fourth quarter of 2026, subject to customary conditions.
The upfront consideration comprises $190 million in cash and $60 million in Grindr common stock. PurposeMed could receive up to an additional $70 million in cash through performance-based earnouts linked to fiscal 2027 targets and payable in 2028.
PurposeMed’s Freddie platform provides virtual sexual healthcare focused on HIV pre-exposure prophylaxis (PrEP). Founded in Canada in 2020 and launched in the U.S. in 2024, Freddie has served more than 55,000 patients and provides clinical coverage across all 50 U.S. states, Washington, D.C., and Canada.
Its end-to-end infrastructure includes synchronous and asynchronous consultations, laboratory testing and order routing, insurance benefits verification, copay assistance, electronic prescription fulfillment and home medication delivery. When taken as prescribed, PrEP can reduce the risk of sexually acquired HIV by approximately 99%. However, around 650,000 of an estimated 2.2 million Americans who could clinically benefit from PrEP currently receive it.
Following the acquisition, Grindr plans to combine PurposeMed and Freddie with Woodwork, its existing sexual wellness and performance medication initiative, to establish Grindr Health as a dedicated commercial healthcare division.
The integration is intended to allow Grindr users to access PrEP education, verify insurance coverage, connect with licensed clinicians, coordinate testing and manage medication refills through the company’s digital ecosystem. Grindr has also set a target of connecting 10 million LGBTQ+ people with HIV prevention services by 2028.
PurposeMed expects full-year 2026 revenue exceeding $80 million and adjusted EBITDA above $10 million. Grindr expects the acquisition to contribute immediately to total adjusted EBITDA dollars, although planned infrastructure investment to support nationwide scaling is expected to temporarily reduce the combined company’s adjusted EBITDA margin percentage.
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