Wollongong software firm expands with local acquisition as city's tech scene grows

Devika, a software development agency led by Ken Kencevski has acquired design agency Black Bear Creative for an undisclosed sum.

The two companies had worked together for six years, but as Mr Kencevski pointed out, the expanded business now offered global customers an end-to-end solution, all done in Wollongong.

"To us, inhouse means in Wollongong. We have connections to design studios across Australia and the US, but we wanted to establish a team under one roof, and for Devika that roof is in Wollongong," he said.

Devika designs and develops apps for businesses and organisations across enterprise, education, government and entertainment.

The start-up was named as one of the Technology Fast 500 by Deloitte in 2019 and 2020, and one of 200 businesses tomorrow by Westpac in 2018.

It is also a select Amazon Web Services partner, enabling businesses to move to the cloud and has more recently supported other start ups with accessing venture capital and business advisory services.

Mr Kencevski said as the company expanded, bringing Black Bear in house made sense.

"Not only are Black Bear Creative very good at what they do; they are already based in the Illawarra which made this decision easy."

Black Bear Creative founder Justin Marchant said design work was a key part of business growth.

"With the increase in demand for design work in the digital product space, it makes sense to work together in a closer capacity to deliver better results for our mutual clients," he said.

The acquisition comes as the Wollongong tech scene matures from a loose collection of start ups into a dynamic sector that is a key part of the former heavy industrial powerhouse.

Initially attracting founders with cheap rents and access to a pipeline of graduates, the COVID lockdowns pushed remote workers out of Sydney and Melbourne with many coming to Wollongong, swelling the ranks of tech workers in the city.

Mr Kencevski said as his company grows, it is hoping to be a local home for tech workers in the Illawarra.

"We will be looking to hire additional designers and product managers in the coming months," he said.

And while the business has its tentacles out in the US and overseas, Mr Kencevski said Wollongong was a drawcard in itself.

"Many of our clients love the excuse to visit Wollongong for the day to participate in an in-person workshop, and then explore the region. We just had one client fly down from Brisbane to check the city and North Gong Hotel out!"