Builders FirstSource to Acquire WTS Paradigm, LLC, a
Transaction Accelerates $ 1 Billion Annual Digital Opportunity for Builders FirstSource and Advances its Strategy of Investing in Innovative Digital Solutions That Help Customers Build More Efficiently
Paradigm’s technology will boost efficiency and productivity in the building supply chain, enhancing Builders FirstSource’s portfolio of value-added products and services
Enhanced digital solutions are expected to improve customer satisfaction and drive growth and operational efficiency of Builders FirstSource’s distribution business
DALLAS, June 29, 2021 (GLOBE NEWSWIRE) – Builders FirstSource, Inc. (Nasdaq: BLDR) (âBuilders FirstSourceâ), today announced that it has entered into a definitive agreement to acquire WTS Paradigm, LLC (âParadigm ), A provider of software solutions and services to the construction products industry, in a cash transaction valued at approximately $ 450 million. The acquisition is an important step in Builder FirstSource’s strategy to invest in innovative digital solutions that will help its customers build more efficiently. Paradigm serves hundreds of customers, including manufacturers, retailers, dealers, home builders and renovators, and is expected to generate approximately $ 50 million in revenue in 2021.
Builders FirstSource President and CEO Dave Flitman said, âThe purchase of Paradigm is an important step in advancing our digital strategy to create meaningful efficiencies in construction processes through prudent investments. in innovative technologies. Home building lags behind other major industries in adopting modern tools that can save time and money and reduce waste. Our unmatched scale, industry relationships and technical knowledge uniquely position us to increase adoption of digital solutions across a fragmented customer base. Paradigm’s powerful technology platform provides us with an enhanced customer value proposition, helping to fuel long-term growth by establishing a leadership position in digital solutions for home builders.
Headquartered in Middleton, Wisconsin, Paradigm specializes in technology, software development and consulting services that help manufacturers, retailers and home builders in the construction products industry increase sales, reduce costs. costs and become more efficient. Paradigm offers its customers a simplified process for configuring, estimating and manufacturing complex products with many options, such as windows and doors. It is important to note that the Paradigm acquisition will enhance the digital capabilities of Builders FirstSource and align with the company’s larger vision of delivering digital solutions that solve problems every step of the way in the building process. House. Builders FirstSource plans to continue investing in Paradigm Omni â¢ base configuration technology, which also powers a newer product: Paradigm Omni â¢ for Homebuilders, a virtual design technology that reduces friction and improves efficiency.
Nathan Herbst, Founder and CEO of Paradigm, said, âI have always been deeply committed to the success of our people, our customers and this company. We will continue to be a great partner for all of our existing customers. Becoming a member of Builders FirstSource will open up 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. I look forward to working with the Builders FirstSource team to improve home building with digital tools.
Across the residential construction industry, digital trends are accelerating and customers want additional solutions that improve process efficiency in complex residential construction projects. Currently, the average residential construction project is difficult to manage, involving more than 60 material suppliers, 100 subcontractors and many other service providers. Improving the efficiency of construction processes is a great opportunity for digital technologies.
Builders FirstSource has the resources and expertise to develop technology and invest in innovation that will solve the challenges and inefficiencies of the home building process. These solutions will not only create a better home buying experience, but they will also benefit Builders FirstSource customers and supplier partners by ensuring better alignment and integration throughout the entire home construction project lifecycle.
The Paradigm acquisition will provide tools to make doing business with Builders FirstSource even easier. Establishing leadership in digital solutions for the residential construction industry is expected to drive the growth and efficiency of Builders FirstSource’s distribution network by enabling it to effectively and transparently align with customers. and better support the whole house building process.
The transaction is expected to close in 2021, subject to customary closing conditions and antitrust approvals. At closing, Paradigm will operate as an independent subsidiary of Builders FirstSource.
Rothschild & Co acts as financial advisor to Builders FirstSource, and Alston & Bird LLP is its legal advisor.
About FirstSource Builders
Based in Dallas, Texas, Builders FirstSource is the largest US provider of construction products, prefabricated components and value-added services to the professional market segment for new residential construction, repair and renovation. We provide customers with an integrated residential construction solution, offering the manufacture, supply, delivery and installation of a full line of structural and related construction products. We operate in 40 states with approximately 550 locations and serve clients in 48 of the top 50 metropolitan statistical areas, providing geographic diversity and balanced exposure to the end market. We serve our customers from strategically located distribution and manufacturing facilities (some of which are co-located) that produce value-added products such as roof and floor trusses, wall panels, stairs, vinyl windows , custom joinery and pre-assembled doors. Builders FirstSource also distributes lumber and sheet lumber products, millwork, windows, interior and exterior doors and other construction products. For more information about Builders FirstSource, visit the company’s website at www.bldr.com.
Paradigm was founded in 1999 in Wisconsin and has over 250 customers with over 70,000 end users. The company employs more than 300 people in the United States. Paradigm is transforming the way the home construction business is conducted across the country. Paradigm’s technology platform is the largest of its kind in the world, serving customers in the new construction and renovation markets by increasing sales and operational efficiency. For more information about Paradigm, visit the company’s website at www.myparadigm.com.
Statements contained in this press release and the appendices hereto that are not purely historical facts or that necessarily depend on future events, including statements on expected market share gains, expected financial performance or other statements about expectations, beliefs, expectations, hopes, synergies, intentions or strategies for the future, may be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Readers are cautioned not to place undue reliance on forward-looking statements. In addition, oral statements made by our directors, officers and employees to the investment and analyst communities, members of the media and others, depending on their nature, may also constitute forward-looking statements. As with the forward-looking statements included in this press release, these forward-looking statements are inherently uncertain, and actual results may differ materially due to many factors. All forward-looking statements are based on information available to Builders FirstSource, Inc. as of the date this press release was submitted. Builders FirstSource, Inc. assumes no obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events, or otherwise. Any forward-looking statement involves risks and uncertainties that could cause actual events or results to differ materially from the events or results described in the forward-looking statements, including risks or uncertainties relating to the recent 2019 novel coronavirus disease. (also known as “COVID -19”), the Company’s merger with BMC, the Company’s growth strategies, including market share gain, or the company’s revenues and results of operations. As the company is heavily dependent on the residential construction industry, lumber prices and the economy, among others, Builders FirstSource, Inc. may not be successful in dealing with these and other risks. Further information regarding factors that could affect our financial and other results can be found in the risk factors section of the most recent Builders First annual report. Source, Inc. on Form 10-K filed with the Securities and Exchange Commission (the âSECâ). and in other reports filed by the Company with the SEC. Accordingly, all forward-looking statements contained in this press release are qualified by the factors, risks and uncertainties contained therein.
Senior Vice President, Investor Relations
FirstSource Builders, Inc.
ICR for FirstSource builders
Source: FirstSource Manufacturers, Inc.