Why a cybersecurity firm chose Memphis for its new headquarters and dozens of new jobs

Memphis landed itself a new technology headquarters Thursday with DEVCON, a woman-owned cybersecurity firm, announcing it would park its operations at UMRF Research Park. 

Over the next five years, the company could bring 161 jobs to Memphis, according to the Tennessee Department of Economic and Community Development. The company's CEO Maggie Louie said DEVCON plans to hire 30 to 50 new employees in the next year in addition to the about 20 employees it has based in London, Atlanta and elsewhere.

"Our company is growing fast," Louie said. "The core technology that we started the company with was addressing just a small needle in the haystack of what turns out to be a rampant problem across multiple industries."

She expects the company's revenue to nearly double in the next year, a large jump for a company that was founded in 2017. DEVCON provides cybersecurity solutions to firms that run third-party JavaScript on their websites. 

With the announcement, Memphis grabbed another high-growth firm to couple with other new-to-Memphis firms that have expanded in the city. Indigo Ag expanded and took over Toyota Center about 10 months ago. A railroad manufacturing firm, Pandrol USA, will relocate its headquarters from New Jersey. 

It also means another tenant for the growing cluster of tech firms at the UMRF Research Park that the University of Memphis unveiled earlier this year. The tenants there include SweetBio, Memphis start-up darling; BookLocal, a blockchain that specializes in helping hotels; and Green Mountain Technology, a logistics tech firm. 

Why it came to the Bluff City

DEVCON had some initial connection to Memphis. Louie spent some time working in Memphis and in other parts of Tennessee. The company's chief technology officer and co-founder, Josh Summitt, is based in Memphis. And Memphis investors have supplied some its venture capital. However, the firm had other suitors. 

"One of the attractions here is that they do have a very vibrant tech community given its size and location, but it's also really inexpensive to live ... For us to build out teams here especially this early stage, it's a lot more affordable," Louie said. "People can live here very inexpensively compared to [the Silicon Valley] or London or Atlanta. The cost of living here from Atlanta is at least 30 percent less." 

Louie acknowledged that cities such as Boston and Nashville were interested in the company calling their city home. 

And, beyond the affordability, there's a cultural aspect to Memphis that makes it appealing, Louie said. 

"We looked at a lot of other cities, including Boston ... One of the reasons culturally we decided on Memphis, there's a very cool scene, great music, and a great history of music. It's got such a rich music culture," Louie said. 

For the University of Memphis, DEVCON's headquarters represents the opportunity to back-fill some of the space at UMRF that just came open with Prospero, a healthcare company, moving Downtown. The move also shows how, in a short period of time, U of M has become a significant player in economic development. 

“We have targeted industry sectors that are high-growth and have inherent ties to our research enterprise at the university and that have ties to the local economy as well,” said Ted Townsend, chief economic development and government relations officer. “So logistics with Green Mountain Technology, healthcare with Prospero, who was in here and moved out. We also have SweetBio, which represents the medical device industry…. These are directly tied to centers of excellence that we have.”

Local and state officials touted the announcement in a news release and attributed it to what they believe is a high-end business environment. 

“Tennessee continues to be an ideal location for tech companies like DEVCON to

establish headquarters and expand operations.I am so honored that DEVCON, a leader in the technology sector, has chosen to locate its headquarters in Memphis and create more than 160 jobs," said Gov. Bill Lee. "More than 38,000 new jobs have been created from recent headquarters, finance and tech projects in our state, and I look forward to seeing DEVCON succeed here as well."

Memphis Mayor Jim Strickland said, “When great companies like DEVCON choose Memphis, and equally important, grow their business here, it’s further proof that what we’ve been doing for the last four years is working."

Strickland's Shelby County counterpart, Mayor Lee Harris, noted the skilled jobs DEVCON brings. 

“It is exciting to see high wage jobs moving to Shelby County and see our tech industry continue to expand," he said. "I am pleased DEVCON selected the University of Memphis for its headquarters. This is further proof that Shelby County is the right place for companies looking to invest and grow in the tech industry."

There will also be a community focus from DEVCON, Louie explained. Her company is working on creating a training program for youths involved in the justice system and plans to partner with local community colleges to create a "ethical hacker" curriculum that would available for those utilizing Tennessee Promise. 

"What we want to do is create programs and jobs ... so we can have less attrition there with people graduating from college leaving the city, but actually staying there and being able to provide jobs for the highly skilled," Louie said. 

The incentives DEVCON will receive for having its headquarters in Memphis weren't immediately available.