Builders FirstSource, Inc. announced today that it has entered into a definitive agreement to acquire WTS Paradigm, LLC, a software solutions and services provider for the building products industry, in a cash transaction valued at approximately $450 million. The news is a significant step forward in Builders FirstSource’s strategy to invest in digital solutions that will help its customers build more efficiently. Paradigm serves hundreds of customers, including manufacturers, retailers, dealers, homebuilders and remodelers and is expected to generate revenue of approximately $50 million in 2021, according to the press release from Builders FirstSource.

“Purchasing Paradigm is an important step in advancing our digital strategy to create significant construction process efficiencies through prudent investments in innovative technologies,” said president and CEO of Builders FirstSource Dave Flitman. “Home construction lags far behind other major industries in the adoption of modern tools that can save time and money and reduce waste … 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 offers its customers a simplified process for configuring, estimating and manufacturing complex products with many options, such as windows and doors. Builders FirstSource says the acquisition will allow it to enhance its digital capabilities and align with the company’s broader vision to provide digital solutions that solve pain points at every step in the homebuilding process.

“I have always cared deeply about the success of our employees, our customers and this company,” says Nathan Herbst, Paradigm Founder and CEO. “We will continue to be a great partner to all our existing customers. “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. 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.