Prime Highlights
- The new unit could match the core business in profit, Arison said.
- Building it in-house would have taken two to three years, he said.
Key Facts
- Freddie has served over 55,000 patients in the U.S. and Canada.
- The deal includes $190 million in cash and $60 million in stock.
Background
Grindr has agreed to buy PurposeMed, the parent company of HIV prevention telehealth provider Freddie, in a $250 million deal that pushes the dating app deeper into health care, the company said in the last week of September.
Grindr will pay $190 million in cash and $60 million in its own stock. The deal also carries up to $70 million in extra cash, payable in 2028, if Freddie meets performance goals in 2027. The sale should close in the fourth quarter. It is Grindr’s first major acquisition.
CEO George Arison said the new unit could become as profitable as the core business and equal or exceed its size. He said building the service in-house would have taken two to three years, since it needs pharmacies and clinicians.
The move supports Woodwork, the LGBTQ health platform Grindr launched in 2025. Grindr expects the combined U.S. telehealth and pharmacy business to earn over $400 a month per active patient. Arison estimated that 50,000 U.S. patients would bring about $240 million in yearly revenue.
The deal should add to EBITDA dollars right away, though early U.S. investment will weigh on margins. Arison said he expects margins to rise with scale and approach the core business’s 40% level. He will share spending plans with shareholders in November.
Freddie began in Canada in 2020 and entered the U.S. in 2024. It now serves patients in all 50 states and Washington, D.C., and has treated over 55,000 people.
Users will now manage PrEP care, tests and prescriptions inside the app.
Grindr shares closed at $15.43.
