News Summary
VCI Global Limited has made headlines with its acquisition of Roots Digital Pte. Ltd., a leading digital marketing firm in Singapore valued at US$2.2 million. This strategic move aims to enhance VCI’s capabilities in SEO, paid media, and social media advertising. Roots Digital has shown impressive revenue growth and supports local SMEs through digital marketing services. VCI’s CEO expressed enthusiasm for this expansion and potential further acquisitions, pointing to the booming digital marketing sector.
Exciting Times Ahead: VCI Global Limited Expands into Singapore With New Acquisition
Big news is making waves in the business world as VCI Global Limited has announced its acquisition of Roots Digital Pte. Ltd., a thriving digital marketing firm located in Singapore. This expansion is valued at an impressive US$2.2 million—that’s around SG$3 million! With a price-to-earnings (P/E) ratio sitting at nearly 3.5, it seems like a smart move for VCI Global.
Roots Digital: A Powerhouse in Performance Marketing
Let’s take a moment to appreciate what Roots Digital brings to the table. Just last year, this vibrant company pulled in over US$3 million in revenue and pocketed nearly US$0.9 million in profit. This means they have not only established themselves well but are also thriving in a competitive market. Over the past three years, Roots Digital has shown off an impressive 84% year-on-year revenue growth—talk about success!
What makes Roots Digital special? They excel in performance marketing across various digital channels, which is a fancy way of saying they know how to get results for their clients online. With a high customer retention rate, averaging around 24 months, it’s no wonder that their customer churn is low. Their impressive list of clients includes top names like the National University Cancer Institute, Singapore (NCIS), Microsoft Corporation, and Parkway College of Nursing and Allied Health.
Support for Local Businesses
One interesting thing to note is that Roots Digital is a pre-approved vendor under the Infocomm Media Development Authority’s (IMDA) Productivity Solutions Grant (PSG). This grant helps local small and medium-sized enterprises (SMEs) secure up to 50% funding for digital marketing services. This support means that Roots Digital is not only explosive in their growth but also community-oriented, helping local SMEs harness the power of digital marketing.
What’s in Store for VCI Global?
So, what does VCI Global hope to gain from this acquisition? Well, they’re looking to create synergies that will boost their capabilities in areas such as SEO, paid media, and social media advertising. The idea is to combine VCI Global’s expertise with Roots Digital’s regional insights, ultimately aim to deliver substantial return on investment (ROI) for their clients. Sounds like a mutual win!
The Digital Marketing Boom
It’s certainly a great time to get into the digital marketing space. In fact, the global digital marketing market is projected to surge to around US$1.2 trillion by 2033. With a projected annual growth rate of 11.22% from 2025 to 2033, this sector isn’t just booming; it’s positively exploding! This growth is driven largely by increasing internet penetration, meaning there are even more potential customers out there, waiting for marketers to reach them across various online platforms.
Looking Ahead
Dato’ Victor Hoo, the Group Executive Chairman and CEO of VCI Global, expressed how enthusiastic he is about this new expansion into Singapore. He’s particularly keen on the potential for additional acquisitions in the future. VCI Global operates from Kuala Lumpur, Malaysia, and is not just a one-trick pony; they are involved in five core businesses, including Capital Market Consultancy, Fintech, Real Estate, AI & Robotics, and Cybersecurity.
The numbers tell an inspiring story as well: in the past twelve months alone, VCI Global reported a staggering 89.38% revenue growth. It’s evident that they are on a path of robust financial growth and valuable service in the evolving digital marketing sector.
In conclusion, the acquisition of Roots Digital by VCI Global marks a significant step as they aim to enhance their service offerings and bring even greater value to their clients. With everything that’s happening, who knows what’s next for these companies?
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VCI Global Limited Acquires Roots Digital Pte. Ltd.
Additional Resources
- GlobeNewswire
- Investing.com
- The Straits Times
- Google Search: VCI Global Limited
- DesignRush
- Wikipedia: Digital Marketing
