Grindr is ramping up its focus on healthcare with plans to acquire PurposeMed Inc., the parent company of telehealth provider Freddie.
Freddie provides access to HIV prevention and PrEP care through telehealth visits. Grindr plans to pick up PurposeMed for $250 million in cash and stock, consisting of $190 million in cash and $60 million in Grindr common stock.
The agreement also includes the potential for up to $70 million in additional cash consideration tied to 2027 performance targets, payable in 2028. The companies expect the deal to close in the fourth quarter, subject to applicable closing conditions.
Freddie expects to generate 2026 revenue of more than $80 million and more than $10 million in Adjusted EBITDA.
Executives say the transaction marks the “first major acquisition” since its founding and a “significant step in building out the Global Gayborhood,” leading with Grindr Health. The acquisition underscores the company's ambition to evolve beyond dating and expand into health and wellness.
With the addition of Freddie, Grindr will make it easier for millions of users to learn about PrEP, connect with clinicians, access testing and prescriptions, and receive medication through the Grindr app, the company said.
Grindr says the deal advances its commitment to connect 10 million LGBTQ+ people globally to HIV prevention directly through the app by 2028.
"For generations of gay men, HIV shaped how we thought about intimacy, relationships and our own futures. Today, we have the tools to prevent it. New infections should be close to zero, and that is what we are striving to achieve,” George Arison, Grindr CEO and chairperson, said in a statement. “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. Together, we can revolutionize access to HIV prevention, just as Grindr revolutionized how gay men meet, and accelerate progress toward ending the HIV epidemic.”
PrEP reduces the risk of HIV by approximately 99%, and eligible U.S. patients can access it at little to no out-of-pocket cost. About 650,000 people in the U.S. are on PrEP today, despite an estimated 2.2 million who could benefit from it.
PrEP use among gay and bisexual men in the U.S. is growing by roughly 10% a year, yet most eligible men still aren’t taking it. Grindr says its uniquely positioned to help close that gap.
Freddie built a physician-led team combined with telehealth capabilities, testing relationships, pharmacy operations, patient-support infrastructure and experience operating in a regulated healthcare environment. Founded in Canada in 2020, Freddie has since helped more than 55,000 patients in Canada and the United States access PrEP and now serves patients in all 50 states. Freddie estimates that its patients' PrEP use prevents approximately 385 new HIV transmissions each year, more than one per day, saving the Canadian and U.S. healthcare systems a combined $270 million to $580 million in future treatment costs annually.
"We built Freddie to make HIV prevention simple and accessible for everyone who needs it. Today we estimate Freddie prevents a new HIV transmission across the US and Canada every day. No one reaches the Freddie community like Grindr does. Together we can bring that care to millions more people, inside the app they already use every day, and speed up the work of ending the HIV epidemic," Husein Moloo, M.D., co-founder and CEO of PurposeMed and Freddie, said in a statement. "I'm incredibly proud of what our team has built, and we're excited for this next chapter as part of Grindr."
Grindr will bring Freddie and Woodwork, Grindr’s performance-medication offering, together into a single Grindr Health experience. Participation will be entirely voluntary for users, the company said. Grindr users can choose whether or not to access care through Freddie; Freddie’s patients can choose whether or not to use Grindr.