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VCI Global Limited Moves Forward with Acquisition of Roots Digital

VCI Global and Roots Digital leaders discussing strategic acquisition plans.

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Real Internet Sales

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News Summary

VCI Global Limited is advancing its acquisition of Roots Digital Pte. Ltd. in a deal worth approximately US$2.2 million. Roots Digital has shown impressive financial performance with over US$3 million in revenue and a robust clientele, marking a significant step in Southeast Asia’s digital marketing landscape. This acquisition is set to enhance VCI Global’s market presence and service offerings.

VCI Global Limited Moves Forward with Acquisition of Roots Digital

In an exciting development for the digital marketing landscape in Southeast Asia, VCI Global Limited, based in Kuala Lumpur, Malaysia, is taking the big step forward by advancing its acquisition of Roots Digital Pte. Ltd., a digital marketing firm from Singapore. The acquisition is valued at around US$2.2 million, which translates to approximately SG$3 million. What’s particularly interesting about this transaction is that it reflects a price-to-earnings (P/E) ratio of nearly 3.5, indicating solid value in the eyes of the investors.

Roots Digital’s Impressive Financial Performance

Roots Digital has made a splash in the digital marketing scene, reporting a whopping over US$3 million in revenue and nearly US$0.9 million in profit for the financial year 2024. What’s even more remarkable is their 84% year-on-year revenue growth over the past three years! This growth story is not just a flash in the pan; it signifies a well-run business that effectively adapts to the dynamic digital landscape.

Services and Clients

The firm specializes in performance marketing, utilizing various digital channels to achieve tangible results. One of their standout features is their impressive average customer retention rate of 24 months, which suggests that clients are consistently satisfied with the services they receive, leading to a reduced churn rate.

Roots Digital is already serving an impressive clientele, including key organizations such as the National University Cancer Institute in Singapore (NCIS), Microsoft Corporation, Parkway College of Nursing and Allied Health, and Orita Sinclair School of Design & Music. Such affiliations not only bolster their credibility but also highlight their expertise in catering to a diverse range of industries.

Government Support Enhances Growth Potential

Adding to their appeal, Roots Digital is a pre-approved vendor under the Infocomm Media Development Authority’s (IMDA) Productivity Solutions Grant (PSG). This means that eligible local SMEs can access up to 50% funding for digital marketing services, making it an attractive option for businesses looking to enhance their online presence.

Synergies and Strategic Expansion

As VCI Global looks to integrate Roots Digital into its broader operations, the acquisition is expected to generate synergies that will enhance both organisations’ market presence and capabilities, particularly in areas like SEO, paid media, and social media advertising. VCI Global aims to marry its own expertise with Roots Digital’s deep regional insights to drive substantial ROI for clients operating in key sectors.

Looking ahead, the global digital marketing market is projected to skyrocket to around US$1.2 trillion by 2033, with a compound annual growth rate (CAGR) of 11.22% from 2025 to 2033. This growth is primarily driven by the increasing internet penetration and the rising importance of digital engagement in business strategies.

A Broader Growth Strategy

This strategic acquisition is a crucial part of VCI Global’s broader growth strategy which is geared towards future expansions that will enhance their service offerings and bring greater value for clients. The company operates across numerous sectors, including Capital Market Consultancy, Fintech, Real Estate, AI & Robotics, and Cybersecurity, and has established a robust footprint in the Asia-Pacific region, along with other markets in the U.S., Europe, and the Middle East.

Leadership Comments

Eco-friendly and optimistic about this new venture, VCI Global’s Group Executive Chairman and CEO, Dato’ Victor Hoo, expressed great enthusiasm regarding the expansion into Singapore and hinted at the potential for more acquisitions in the future.

Continuous Innovation Focus

In line with their commitment to growth and innovation, VCI Global has recently made several strategic moves, including investments in AI startups, acquiring solar photovoltaic projects, and securing significant contracts to provide AI solutions. These initiatives underline the company’s dedication to not just expanding its portfolio but also embracing modern technologies and sustainable practices.

As this acquisition unfolds, the digital marketing space in Singapore could witness exciting changes that benefit clients and businesses alike. Stay tuned; it looks like VCI Global and Roots Digital are all set to make waves in the industry!