"Our unmatched scale, industry relationships and technical knowledge uniquely position us to increase the adoption of digital solutions across a fragmented customer base," Flitman added. "Paradigm’s powerful technology platform provides us with an enhanced customer value proposition, helping fuel long-term growth by establishing a leadership position in digital solutions for homebuilders.”
Based in Middleton, Wis., Paradigm specializes in technology, software development, and consulting services that help manufacturers, retailers and homebuilders in the building products industry boost sales, reduce costs and become more efficient.
The tech company offers its customers a simplified process for configuring, estimating and manufacturing complex products with many options, such as windows and doors.
Acquiring Paradigm is expected to align with Builders FirstSource's broader vision to provide digital solutions that solve pain points at every step in the home building process.
Builders FirstSource said it plans to continue to invest in the core Paradigm Omni configuration technology, which also powers a newer product: Paradigm Omni for Homebuilders, a virtual design technology that improves efficiency.
"Becoming a part of Builders FirstSource will unlock new opportunities for our employees, introduce us to new customers and allow us to accelerate the adoption and deployment of our software to solve our customers’ complex business problems," said Nathan Herbst, Paradigm founder and CEO. "I look forward to working with the Builders FirstSource team to enhance homebuilding through digital tools.”
The transaction is expected to close in 2021, subject to customary closing conditions and antitrust approvals. Upon closing, Paradigm will operate as an independent subsidiary of Builders FirstSource. Rothschild & Co is serving as financial advisor to Builders FirstSource, and Alston & Bird LLP is serving as its legal counsel.
Based in Dallas, Texas, Builders FirstSource operates in 40 states with approximately 550 locations and services customers in 48 of the top 50 metro markets.