According to CNBC, Grindr said Wednesday it will acquire PurposeMed, the parent company of HIV prevention telehealth provider Freddie, for $250 million as it expands further into health care. The LGBTQ-focused dating platform will pay $190 million in cash and $60 million in Grindr common stock, with up to $70 million in additional cash consideration tied to Freddie's 2027 performance and payable in 2028. The deal is expected to close in the fourth quarter and marks Grindr's first major acquisition since the company was founded in 2009.

Chief Executive George Arison said the company believes the new business line can become as profitable as its core operation and potentially as large or larger. Grindr said the combined U.S. telehealth and pharmacy business is expected to generate more than $400 in monthly revenue per active patient, or more than $4,800 annually for a patient in care for a full year. At a scale of 50,000 U.S. patients, Arison estimated the business could produce about $240 million in annual revenue.

Grindr said the platform should be immediately accretive to EBITDA dollars, though investments to build out the U.S. operation will initially pressure margins. Arison said the company will provide shareholders with more details in November on planned capital spending and expects margins to improve with scale and eventually approach the more than 40% margins of its core business. Freddie, founded in Canada in 2020, expanded into the U.S. in 2024 and now serves patients in all 50 states and Washington, D.C., while Grindr estimates about 400,000 U.S. users currently indicate on their profiles that they take PrEP.