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VCI Global Acquires Roots Digital for $2.2 Million

Digital marketing scene in Singapore with growth indicators

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News Summary

VCI Global Limited has acquired Roots Digital Pte. Ltd. for $2.2 million. This strategic move aims to enhance VCI’s presence in Singapore’s digital marketing sector. Roots Digital, with its impressive track record in performance marketing and established client relationships, is expected to contribute significantly to VCI’s growth. The acquisition is part of a broader vision to innovate and deliver superior ROI for clients in a booming digital marketing landscape with projected growth to $1.2 trillion by 2033.

Exciting Developments in Singapore’s Digital Marketing World!

Today, we’re thrilled to share some big news in the digital marketing industry! VCI Global Limited, a company listed on NASDAQ under the ticker VCIG, is making significant moves by acquiring Roots Digital Pte. Ltd. for a cool $2.2 million (or about SG$3 million). This acquisition opens the door for VCI Global to dive deeper into Singapore’s vibrant digital marketing scene, and it sure is making waves!

What Does the Acquisition Mean?

The price of this acquisition reflects a price-to-earnings (P/E) ratio of nearly 3.5. Sounds good, right? Well, it gets even better! Roots Digital achieved impressive revenues of over $3 million in 2024, with profits nearing $0.9 million. That’s no small feat in today’s competitive market!

What’s truly outstanding is that Roots Digital has experienced a remarkable 84% year-on-year growth in revenue over the past three years. This growth showcases their exceptional performance in the digital landscape, especially in the realm of performance marketing across various digital channels.

Who Are Roots Digital?

For those who may not be familiar, Roots Digital is known for its stellar financial performance and customer retention. They maintain an impressive average customer retention rate of 24 months, demonstrating their commitment to keeping clients happy and engaged! Speaking of clients, they’ve had the privilege of working with some big names, including the National University Cancer Institute, Microsoft Corporation, Parkway College of Nursing and Allied Health, and Orita Sinclair School of Design & Music. Quite the impressive lineup!

Roots Digital also has a unique edge; they are a pre-approved vendor under the Infocomm Media Development Authority’s (IMDA) Productivity Solutions Grant (PSG), allowing eligible local SMEs to secure up to 50% funding for digital marketing services. This position gives them a competitive advantage in helping small and medium enterprises thrive in the digital space.

The Future Looks Bright

With this acquisition, VCI Global expects to achieve some fantastic synergies and broaden their market presence in Singapore. This move will greatly enhance their capabilities, particularly in areas like SEO, paid media, and social media advertising. The vision behind this partnership is clear: to deliver substantial ROI for clients across key industries by blending their expertise with Roots Digital’s regional insights.

It’s important to note that the global digital marketing market is on an upward trajectory! It is projected to grow to approximately $1.2 trillion by 2033, with a compound annual growth rate (CAGR) of 11.22% from 2025 to 2033. This phenomenal growth underscores the importance and relevance of investing in digital marketing services today.

Looking Ahead

Dato’ Victor Hoo, the Group Executive Chairman and CEO of VCI Global, is optimistic about this acquisition. He believes that it will pave the way for future acquisitions that would broaden their offerings and add even greater client value. Their commitment to fostering innovation and creating exceptional value across the Asia-Pacific region and beyond is also notable.

As always, it’s essential to approach forward-looking statements with caution, especially considering the uncertainties and risks linked to future performance. But we’re definitely excited to see what this new chapter holds for both VCI Global and Roots Digital!

With such promising developments on the horizon, everyone in the digital marketing landscape should keep their eyes peeled. Who knows what other exciting collaborations and innovations are just around the corner?