January 23, 2025

VCI Global Limited Acquires Roots Digital Pte. Ltd.

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News Summary

VCI Global Limited is set to acquire Roots Digital Pte. Ltd., a digital marketing firm in Singapore, for approximately US$2.2 million. This acquisition aims to enhance VCI Global’s offerings and expand their market presence in the rapidly growing digital marketing landscape. Roots Digital has demonstrated remarkable revenue growth and has served major clients, solidifying its reputation in performance marketing.

Exciting News: VCI Global Limited Takes Major Step with Roots Digital Acquisition

In a move that’s sure to turn heads in the digital marketing world, VCI Global Limited is on the brink of acquiring Roots Digital Pte. Ltd., a well-regarded digital marketing firm based in Singapore. This acquisition, valued at around US$2.2 million (which translates to about SG$3 million), marks a significant milestone for VCI Global as they work to strengthen their foothold in the expanding Singaporean market.

A Closer Look at Roots Digital

Roots Digital is no stranger to success. The company has been doing remarkably well, reporting revenues exceeding US$3 million along with nearly US$0.9 million in profit for the year 2024. One of the standout aspects of Roots Digital is their impressive 84% year-on-year revenue growth over the last three years—talk about impressive strides!

So, what’s the secret behind their success? Roots Digital has carved out a niche in performance marketing across various digital channels and has even snagged multiple awards for their stellar work. Their ability to keep clients on board is another feather in their cap, boasting an average client retention rate of 24 months and significantly reducing customer churn.

Big-Name Clients and Recognition

Roots Digital has won the trust of some heavyweights, serving clients like the National University Cancer Institute, Singapore (NCIS), Microsoft Corporation, Parkway College of Nursing and Allied Health, and the Orita Sinclair School of Design & Music. Their reputation is further solidified by being a pre-approved vendor under the Infocomm Media Development Authority’s (IMDA) Productivity Solutions Grant (PSG), which allows local small and medium-sized enterprises to access funding for digital marketing services.

What Does This Mean for VCI Global?

The acquisition opens up a wealth of new opportunities for both VCI Global and Roots Digital. Dato’ Victor Hoo, the Group Executive Chairman and CEO of VCI Global, shared his enthusiasm about the deal, highlighting the potential for expanding offerings and adding value to clients. VCI Global aims to harness this acquisition to enhance their capabilities in essential areas like SEO, paid media, and social media advertising.

As the global digital marketing landscape continues to grow—projected to reach approximately US$1.2 trillion by 2033 with an annual growth rate of 11.22% from 2025 to 2033—VCI Global recognizes the importance of making strategic moves to stay competitive. With increasing internet penetration, now is a prime time for VCI to dive deeper into digital marketing.

Looking Ahead

Headquartered in Kuala Lumpur, Malaysia, VCI Global has diversified interests across five core sectors: Capital Market Consultancy, Fintech, Real Estate, AI & Robotics, and Cybersecurity. By acquiring Roots Digital, they are not just expanding their market presence in Singapore but also enriching the landscape of digital marketing in the region.

Overall, this acquisition paints a bright future. As VCI Global sets its sights on enhancing its service offerings and increasing its footprint in digital marketing, one can only imagine the exciting developments that lie ahead for both companies and their clients.

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