News Summary
VCI Global Limited is set to acquire Roots Digital Pte. Ltd. for approximately US$2.2 million, marking a significant step in expanding its digital marketing capabilities. This acquisition showcases VCI’s ambitions in the market, especially with Roots’ impressive growth and established client base. The deal is expected to leverage synergies between the two companies, enhancing their service offerings and positioning them strategically in the competitive digital landscape.
Exciting Times Ahead: VCI Global Limited Advances Acquisition of Roots Digital
In a thrilling business development, VCI Global Limited, based in Kuala Lumpur, Malaysia, is making strides in the digital marketing world with its acquisition of Roots Digital Pte. Ltd., a digital marketing company from Singapore. This strategic move is valued at approximately US$2.2 million (or around SG$3 million) and reflects a price-to-earnings (P/E) ratio of about 3.5. It’s a significant step for VCI Global, showcasing their ambition to grow and expand their market presence.
Roots Digital’s Impressive Performance
Roots Digital has demonstrated stellar performance over recent years, reporting over US$3 million in revenue and nearly US$0.9 million in profit for the year 2024. What’s truly remarkable is their 84% year-on-year revenue growth over the past three years, highlighting their effectiveness in the competitive digital marketing landscape.
As a digital marketing firm, Roots Digital specializes in performance marketing across various digital channels. They’ve built a solid reputation with clients in both Malaysia and Singapore, including prestigious names like the National University Cancer Institute, Singapore (NCIS), Microsoft Corporation, Parkway College of Nursing and Allied Health, and Orita Sinclair School of Design & Music. With an impressive average customer retention rate of 24 months, they have effectively reduced churn, ensuring consistent service delivery and client satisfaction.
Leveraging Synergies for Growth
The acquisition is anticipated to create substantial synergies between VCI Global and Roots Digital, particularly in enhancing capabilities within Search Engine Optimization (SEO), paid media, and social media advertising. VCI Global aims to merge its expertise with Roots Digital’s regional insights to bring valuable returns on investment for clients across key industries.
Adding another feather to their cap, Roots Digital is a pre-approved vendor under the Infocomm Media Development Authority’s (IMDA) Productivity Solutions Grant (PSG). This enables eligible local small and medium-sized enterprises (SMEs) to receive up to 50% funding for their digital marketing services, demonstrating Roots Digital’s commitment to supporting local businesses in their digital transformation journeys.
Future of Digital Marketing
The global digital marketing market is on an upward trajectory, expected to reach an astonishing US$1.2 trillion by 2033, with a compound annual growth rate (CAGR) of 11.22% from 2025 to 2033. This growth is primarily fueled by increased internet penetration and the ever-evolving digital landscape.
VCI Global’s acquisition of Roots Digital is not just a standalone event; it’s part of a broader growth strategy that includes plans for future expansions and enhancements to service offerings. By aligning their operations with the latest digital marketing trends and technologies, VCI Global aims to create greater value for clients while advancing its position in the market.
Words from the Top
Excitement is palpable at VCI Global, especially from their Group Executive Chairman and CEO, Dato’ Victor Hoo, who expressed enthusiasm about expanding into Singapore and the prospects for future acquisitions. His vision and leadership continue to steer VCI Global towards innovative paths and opportunities.
Recent Strategic Moves
In addition to acquiring Roots Digital, VCI Global has made several impressive moves recently, including investment in AI startups, securing significant contracts to provide AI solutions, and acquiring solar photovoltaic projects. These actions emphasize their commitment to growth and innovation across various sectors, including Capital Market Consultancy, Fintech, Real Estate, AI & Robotics, and Cybersecurity.
As VCI Global takes these bold steps forward, the business community eagerly anticipates what’s next in this exciting journey of expansion and evolution.
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Additional Resources
- GlobeNewswire: VCI Global Advances Acquisition of Singapore-based Roots Digital
- Investing.com: VCI Global Expands into Singapore
- Business Insider: The Curious Journey of Qurious Media
- Statista: Singapore Digital Advertising Spending
- Wikipedia: Digital Marketing
