In an industry littered with one- and two-person teams, a pair of web designers has decided to merge their businesses, in the process becoming one of the largest web site design companies in Western Australia.
In an industry littered with one- and two-person teams, a pair of web designers has decided to merge their businesses, in the process becoming one of the largest web site design companies in Western Australia.
Web site and traditional design studio Bam Creative is merging with long-time competitor Cube7, an award-winning web site design and development company.
The new entity will remain branded as Bam Creative.
The merger, which will take place on August 1, will result in a combined client base of more than 150, billings of $1 million, annual turnover of about $750,000, and cost savings of better than 20 per cent.
Cube7 director Simon Wright said the merger was an important step in terms of client service and from a financial perspective.
“Our broad service offerings, coupled with a larger team and a new enthusiasm to build upon our joint experience, will return greater results to our client base,” he said.
Bam Creative managing director Miles Burke told WA Business News the combined company would have a staff of 12.
“Bam works with small to medium-sized companies and not-for-profit firms, whereas Cube7 has more of a government and large corporate focus,” he said.
“So it seemed a logical fit from a client-based perspective as well as from an ethos perspective in that both businesses are painfully focused on designing and ensuring the right quality of work in terms of our businesses as well as a real community focus.”
Mr Burke said the merger was a sign to similar sized businesses in the industry that people need to consider merging and longer-term planning.
“I imagine similar type businesses merging in the next six months,” he said. “The advancement of their clients’ requirements is leading them to need larger teams.
“The idea that a solo person could come up with the design, the development, search engine optimisation, marketing and planning…it just can’t happen.”
He claimed clients were coming to the web industry with a much clearer idea of what they were looking for.
“People are coming to us with specifications and plans while a couple of years ago they would come to you saying I need a web site, make us up something like this,” Mr Burke told WA Business News.
“About 70 per cent of our work would now be beyond static web sites, as there is a greater spectrum of jobs now available. Clients are now actually driving a lot of the advancement in the industry.”
The merger follows Bam Creative’s purchase of the business of Madpilot Productions, a small cutting-edge web development
business, only a few weeks ago.
Bam Creative was established in late 2002 and has grown to eight staff, while Cube7 has operated since 2000 and has a staff of four.
Cube7 and Bam Creative have a wide range of clients covering government, corporate and small business sectors, including Telstra Rally Australia, Woodside, Evans and Tate, HBOS company St Andrews Australia, Cancer Council Western Australia, Mercy Group, WA Maritime Museum and Vmoto.
The merged entity will be moving to its new offices on Beaufort Street, Inglewood, during the next few weeks.
Both Mr Burke and Mr Wright are committee members of Port 80, the Australian Web Industry Association, which was formed in 2002 and aims to further advance and educate the public about the web industry in Australia.
