Grindr Buys PurposeMed for $250 Million, Expanding PrEP Telehealth Reach
Updated
Updated · CNBC · Sep 30
Grindr Buys PurposeMed for $250 Million, Expanding PrEP Telehealth Reach
3 articles · Updated · CNBC · Sep 30
Summary
$250 million gives Grindr its first major acquisition since 2009, buying PurposeMed—parent of HIV-prevention telehealth provider Freddie—with $190 million in cash and $60 million in stock, plus up to $70 million tied to 2027 performance.
Freddie already serves all 50 U.S. states and Washington, D.C., and has treated more than 55,000 patients across the U.S. and Canada, letting Grindr add clinician access, testing, prescriptions and refills directly into its app faster than building from scratch.
More than 400,000 U.S. Grindr users say they take PrEP, while over 2 million more could benefit, giving the company a built-in audience as it expands Woodwork, its LGBTQ healthcare platform launched in 2025.
Grindr estimates the combined U.S. telehealth and pharmacy business can generate over $400 a month per active patient; at 50,000 U.S. patients, that would equal about $240 million in annual revenue.
The deal is expected to close in the fourth quarter and be immediately accretive to EBITDA, though Grindr said near-term investment in the U.S. buildout will pressure margins before scale potentially lifts them toward its core business's 40%-plus level.