News Summary
VCI Global Limited has announced its acquisition of Roots Digital Pte. Ltd. for approximately US$2.2 million, aiming to enhance its digital marketing presence in Singapore. This strategic move will create synergies between the two companies, leveraging VCI’s expertise and Roots Digital’s strong customer retention and impressive growth rate in the digital marketing landscape.
VCI Global Limited Expands Horizons with Roots Digital Acquisition
In exciting news from the business world, VCI Global Limited, which is based in Kuala Lumpur, Malaysia, is making waves with its latest acquisition. The company has set its sights on growing its digital marketing footprint in Singapore by planning to acquire Roots Digital Pte. Ltd., a notable digital marketing firm headquartered right in Singapore. The deal is expected to cost around US$2.2 million, which translates to roughly SG$3 million.
Financials Looking Strong
The purchase price of Roots Digital reflects a price-to-earnings (P/E) ratio of nearly 3.5. For those keeping score, Roots Digital has showcased impressive financials, reporting more than US$3 million in revenue and almost US$0.9 million in profit for the year 2024 alone. Talk about a successful business model! The firm has enjoyed a stunning 84% year-on-year revenue growth over the past three years, which is no small feat in the competitive landscape of digital marketing.
A Winning Formula in Digital Marketing
Roots Digital has carved a niche for itself by specializing in performance marketing. They work across various digital channels and have managed to keep their customers happy, boasting an average retention rate of 24 months. This means they have mastered the art of customer satisfaction, reducing churn effectively. Among their impressive clientele are big names like the National University Cancer Institute in Singapore, Microsoft, and the Parkway College of Nursing and Allied Health.
Benefits of the Acquisition
This acquisition is expected to create synergies between VCI Global and Roots Digital, enhancing their market presence and capabilities in Singapore, particularly in areas such as SEO, paid media, and social media advertising. The merger aims to leverage VCI’s expertise together with Roots Digital’s regional insights to deliver substantial Return on Investment (ROI) for clients from various industries.
Strategic Growth Plans
The timing couldn’t be better. The global digital marketing market is forecasted to skyrocket to a whopping US$1.2 trillion by the year 2033. With a compound annual growth rate (CAGR) of 11.22% expected from 2025 to 2033, this growth is mainly fueled by the surging rate of internet penetration worldwide.
VCI’s acquisition of Roots Digital is part of a broader growth strategy aimed at enhancing service offerings and delivering greater value to clients. Operating across multiple sectors, including Capital Market Consultancy, Fintech, Real Estate, AI & Robotics, and Cybersecurity, VCI Global has established a robust presence across the Asia-Pacific, the U.S., Europe, and the Middle East.
Looking to the Future
Excitement is in the air, and Dato’ Victor Hoo, VCI Global’s Group Executive Chairman and CEO, has expressed enthusiasm about this strategic expansion into Singapore. He also hinted at the potential for future acquisitions, suggesting that VCI is not stopping here.
In addition to this acquisition, VCI Global has also been busy making other strategic moves. They’ve been investing in AI startups, acquiring solar photovoltaic projects, and securing significant contracts for AI solutions. All of these efforts underscore their commitment to growth and innovation in a rapidly evolving landscape.
So, as VCI Global set their sights on Singapore through this acquisition, it marks an important step forward in creating a more robust digital marketing platform, showing just how vibrant and dynamic the business environment in the region can be.
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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
