LOCAL web and brand development company Vivid Interactive and Design has acquired e-business consultancy Expedient Studios.
The news comes on the back of the demise of one of Perth’s major web development firms, Pretzel Logic, which appointed administrators earlier this month.
Vivid Interactive and Design director Damian Cook said the firm had been growing since its inception in 1996.
“There is quite a bit of consolidation to happen [in the web development market] from our point of view,” he said.
“What is happening is that smaller players are coming on board with people like us who have the clients and larger operations.
“Expedient were getting to the position of struggling and there are quite a few in that boat.”
However, he said the collapse of Pretzel Logic, ranked as the second largest web developer in WA Business News’ 2003 Book of Lists, came as a surprise.
“There is a bit of a shake up in the industry and it has come as a bit of a shock,” Mr Cook said.
He said web development accounted for 70 per cent of Vivid Interactive and Design’s business but expected further growth on the back of the Expedient Studios acquisition.
“We’ve grown by 50 per cent per year, each year. We expect to do that again this year.”
Mr Cook said the Expedient Studios brand would not be incorporated into Vivid Interactive and Design.
He also said the company was not considering purchasing Pretzel Logic.
In November last year Pretzel Logic managing director Steve Pretzel confirmed to WA Business News that the company was undergoing a restructure and embarking on a move to cheaper premises but said he was confident of the company’s market position.
Internet Business Corporation managing director Richard Keeves said the e-business market space had changed in recent times but he was still positive about the industry’s outlook.
“The reality is that the market has changed a lot over the last few years. The needs and demands of customers has changed, the expectations have changes. Some got carried away with their own ego … others were not able to reduce the costs of keeping with in their revenue base,” he said.
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