VCI Global Expands Horizons with Roots Digital Acquisition

Categories: HERE Press ReleaseSponsored News - Digital Marketing

The VCI Global team engages in collaborative digital marketing strategy sessions.

News Summary

VCI Global Limited, based in Kuala Lumpur, Malaysia, is set to acquire the Singapore-based firm Roots Digital Pte. Ltd. in a deal valued at US$2.2 million. This move aims to strengthen VCI Global’s position in the rapidly growing digital marketing sector, particularly through performance marketing strategies. Roots Digital has demonstrated impressive revenue growth and a strong client retention rate, making it a strategic choice for VCI Global as it looks to enhance its market presence in Singapore and the Asia-Pacific region.

Big News in the Digital Marketing World: VCI Global Expands its Horizons!

In an exciting development for the digital marketing industry, VCI Global Limited, based in Kuala Lumpur, Malaysia, is taking significant steps toward acquiring the Singapore-based firm Roots Digital Pte. Ltd. The acquisition, valued at an impressive US$2.2 million (or around SG$3 million), has a suggested price-to-earnings (P/E) ratio of approximately 3.5. This move is set to strengthen VCI Global’s position in the burgeoning digital marketing sector.

Roots Digital: A High-Flying Performer

Now, what makes Roots Digital so appealing? For starters, this digital marketing firm reported a robust revenue of over US$3 million and nearly US$0.9 million in profit for the year 2024. Even more astonishing is their 84% year-on-year revenue growth over the past three years! It’s no wonder VCI Global is eager to partner with such a dynamic company.

Roots Digital specializes in performance marketing across various digital channels. They have become known for their stellar client retention, boasting an average customer retention period of 24 months. This kind of commitment helps minimize customer churn—a significant upside in today’s competitive market.

Impressive Client List

Furthermore, Roots Digital has been a trusted partner to reputable organizations in Malaysia and Singapore, including the National University Cancer Institute Singapore (NCIS), Microsoft Corporation, Parkway College of Nursing and Allied Health, and Orita Sinclair School of Design & Music.

What’s even cooler is that they are a pre-approved vendor under the Infocomm Media Development Authority’s (IMDA) Productivity Solutions Grant (PSG). This enables local SMEs to secure up to 50% funding for their digital marketing services. It’s a win-win situation for both Roots Digital and the small businesses benefiting from their expertise!

Why This Acquisition Matters

So, what does VCI Global expect to gain from this acquisition? The potential for synergies between VCI Global and Roots Digital is immense! Enhancing their market presence and capabilities in Singapore is a top priority, especially in areas like SEO, paid media, and social media advertising.

VCI Global aims to fuse its existing expertise with Roots Digital’s regional insights to provide a substantial return on investment (ROI) for clients across various key industries. Considering the global digital marketing market is projected to soar to around US$1.2 trillion by 2033, with a compound annual growth rate (CAGR) of 11.22% from 2025 to 2033, this acquisition ties into a robust growing trend.

Looking to the Future

VCI Global’s acquisition of Roots Digital isn’t just a one-off gesture; it’s part of a broader growth strategy. They’ve made it clear that they intend to continue expanding, enhancing their service offerings, and adding greater value for clients. VCI Global has already established a commendable presence across various sectors like Capital Market Consultancy, Fintech, Real Estate, AI & Robotics, and Cybersecurity. They’ve even garnered a solid footing across the Asia-Pacific region, the U.S., Europe, and the Middle East!

According to Dato’ Victor Hoo, the Group Executive Chairman and CEO of VCI Global, they’re thrilled about the potential to grow in Singapore and are optimistic about future acquisitions.

More Than Just Acquisitions

In addition to this acquisition, VCI Global has been busy with other strategic moves as well. They’ve invested in AI startups, acquired solar photovoltaic projects, and secured substantial contracts for providing AI solutions. This focus highlights their commitment to growth and innovation, which can only bode well for all involved!

With all these developments taking place, the landscape is set for an exciting evolution in digital marketing, driven by the synergistic partnership of VCI Global and Roots Digital. It will definitely be fascinating to see how their combined prowess can reshape the industry while offering exceptional value to clients in the region.