Grindr Inc. Announces Acquisition of PurposeMed (up to $320M)

What Happened

• On September 30, 2026, Grindr Inc. (through wholly owned subsidiary 18273618 Canada Inc.) entered a Securities Purchase Agreement to acquire PurposeMed Inc., the parent of the Freddie telehealth PrEP and HIV‑prevention business. The agreed base purchase price is $250 million ( $190 million cash + $60 million in Grindr common stock, equal to 3,851,684 shares valued at $15.58 per share), plus an earnout of up to $70 million in cash tied to PurposeMed’s financial performance for the fiscal year ending December 31, 2027. The Company has guaranteed the buyer’s obligations under the Purchase Agreement.

Key Details

• Agreement date: September 30, 2026; termination if closing not occurred by December 30, 2026.
• Consideration: $190M cash + 3,851,684 Grindr shares (valued at $15.58 VWAP for the 15 trading days ended Sep 29, 2026) + up to $70M cash earnout. Shares will be subject to a 12‑month lock‑up after closing.
• Conditions & protections: Closing subject to customary conditions (representations, absence of material adverse effect, pre‑closing restructuring, NYSE approval for issued shares). Buyer obtained buyer‑side reps & warranties insurance; certain sellers provide limited indemnities; Sellers’ representative is Dr. Husein Moloo.
• Target business: Freddie brand telehealth provider of PrEP and HIV prevention care, including affiliated clinical network partnerships.

Why It Matters

• The deal adds a telehealth HIV‑prevention business to Grindr’s portfolio and will affect the company’s cash (up to $260M in potential cash outlay if earnout paid) and share count (issuance of ~3.85M shares).
• Completion depends on several closing conditions (including NYSE approval of the shares) and may be terminated if not closed by the end of 2026, so timing and final impact remain conditional.
• The Company’s guarantee of the buyer’s obligations and the structure (insurance plus limited seller indemnities) define where post‑closing legal and financial risks may lie.