News Summary
VCI Global Limited has announced a strategic acquisition of Roots Digital Pte. Ltd. for $2.2 million, enhancing its digital marketing capabilities in Singapore. With a strong revenue growth and notable clientele, this acquisition is expected to create synergies between the two firms, paving the way for expanded market presence and superior client ROI. This strategic move aligns with VCI Global’s broader growth strategy in the Asia-Pacific region.
VCI Global Limited Moves Ahead with Exciting Acquisition in Singapore
In a strategic leap forward, VCI Global Limited, a company based in the vibrant city of Kuala Lumpur, Malaysia, is advancing its acquisition of Roots Digital Pte. Ltd., a well-regarded digital marketing firm located in Singapore. The acquisition is valued at an impressive US$2.2 million, which equates to around SG$3 million. This move reflects a price-to-earnings (P/E) ratio of almost 3.5, shining a light on the potential for profitable growth ahead.
Roots Digital’s Impressive Growth and Clientele
Roots Digital has shown remarkable prowess in its field, raking in over US$3 million in revenue and nearly US$0.9 million in profits for the year 2024. What’s truly impressive is their astounding 84% year-on-year revenue growth over the past three years. The firm excels in performance marketing across numerous digital channels and boasts an average customer retention rate of around 24 months, a testament to their outstanding service that effectively brings down customer churn.
Roots Digital has cultivated a solid reputation by working with prestigious clients in both Malaysia and Singapore. This includes well-regarded organizations such as the National University Cancer Institute, Singapore (NCIS), Microsoft Corporation, Parkway College of Nursing and Allied Health, and the Orita Sinclair School of Design & Music. This esteemed clientele portfolio undoubtedly speaks volumes about the quality and reliability of their services.
Potential for Synergy: What’s Next?
The acquisition is expected to bring about exciting synergies between VCI Global and Roots Digital. Combining forces will likely enhance both market presence and operational capabilities in Singapore, especially in areas like SEO, paid media, and social media advertising. The overarching aim is to blend VCI Global’s extensive expertise with Roots Digital’s regional insights to deliver robust returns on investment (ROI) for clients across key industries.
A Thriving Digital Market
Now, it’s hard to ignore the broader picture here. The global digital marketing market is on track to grow to 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 driven by an increase in internet users and digital engagement, presenting a plethora of opportunities for companies poised to leverage these trends.
VCI Global’s Comprehensive Growth Strategy
The acquisition of Roots Digital is just one thread woven into VCI Global’s broader tapestry of growth strategies. The company is not just focused on this sole direction, as they also have plans for future expansions that will enhance service offerings and provide even greater value to their clients. VCI Global operates in a multitude of sectors, such as Capital Market Consultancy, Fintech, Real Estate, AI & Robotics, and Cybersecurity. Their reach is impressive, stretching across the Asia-Pacific region, into the U.S., Europe, and even the Middle East.
Words from the Top
Expressing enthusiasm about this new chapter, VCI Global’s Group Executive Chairman and CEO, Dato’ Victor Hoo, noted how excited he is about the expansion into Singapore and hints at the potential for future acquisitions. This reflects a forward-thinking mentality that could reshape the digital marketing landscape.
Looking Forward
In other recent news, VCI Global has made several strategic moves, such as investing in AI startups, acquiring solar photovoltaic projects, and securing significant contracts to deliver AI solutions. This continues to emphasize their unwavering commitment to growth and innovation. As VCI Global embraces these new frontiers, the journey ahead seems bright with endless possibilities.
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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
