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Bitwise acquires Bakersfield-based Stria LLC.

Bitwise Industries, a Fresno-based workforce development firm, has bought Stria LLC, a Bakersfield-based process outsourcing company, in a transaction that outsiders and insiders view as boosting Kern County’s aspirations to become a tech and business services powerhouse.

Stria founder and CEO Jim Damian said the purchase announced Tuesday would help the firm improve employee benefits and increase its 120-person payroll by up to 10% to fulfill current demand for services from around the nation.

Bitwise views the purchase, its third this year following two others in unrelated industries outside of California, as evidence of its local commitment and, perhaps, a destination for the paid apprentices it teaches in Bakersfield and ten other locations throughout the country.

The announcement of the acquisition, the details of which were not published, fueled optimism that a local industry designated as promising by Kern’s B3K Prosperity economic development initiative could create good-paying employment backed by clients from beyond the county.

“I… see great development potential for Stria now that some of its expansion obstacles have been lifted by what Bitwise can bring to the table,” said Chris McGlasson, CEO of Bakersfield-based LANPRO Systems Inc., a managed service provider for small and medium businesses. He congratulated both businesses.

Stria helps other firms optimize their services by adding optical character recognition software that makes business papers completely searchable. It processes papers and other information for customers in Hawaii and the East Coast. It also collaborates with DocuSign to deliver automated services such as the virtual signature product from the San Francisco-based startup.

Stria has been on Inc. magazine’s 5000 list of the country’s fastest-growing privately held firms multiple times since Damian launched the company in Bakersfield in 2005. He claims that even during the epidemic, Stria has grown by double digits. Damian said that he created the firm using a government loan, which he has since paid off, and no outside funding until now.

He believes the deal would help Stria recruit top personnel. He said that 95% of Stria workers are from Bakersfield.

“Really, this purchase by Bitwise will enable us to satisfy market demand in a manner that allows individuals to develop sustainable, well-paying professions,” Damian said.

He also said that the company’s headquarters would remain on Mars Court, near Meadows Field Airport, while certain engineers will work at the Bitwise facility, which will provide required space for downtown development.

Bitwise has expanded fast in recent years, powered by significant outside investment, with aspirations to emulate its success in downtown Fresno, where its computer training operations have generated a coworking operation and spun off a succession of digital firms.

Bitwise has secured governmental workforce development contracts in Bakersfield, established a three-building training and office complex at 18th and H streets, and created a startup accelerator.

Natasha Felkins, Bitwise’s vice president in Bakersfield, said she sees potential in strengthening the local technology industry, especially given B3emphasis K’s on business services.

“I genuinely envision the tech business being one of the funnels for development (in) employment in Kern County in the next five years,” she added.

Advanced Data Storage President Michael Hansen described Bitwise’s purchase as “excellent news” and an acknowledgment of Kern County’s future potential.

“Advanced Data Storage and Stria have been working on projects together for over ten years,” Hansen said. “We look forward to continuing to collaborate with the Stria/Bitwise team on future initiatives and feel that any growth is beneficial to our industry.”

“Stria has an established revenue-generating mechanism and an outstanding culture, which should further strengthen Bitwise’s possibilities,” he said.

Originally published at Bakersfield News HQ.