News Summary
VCI Global Limited is set to acquire Roots Digital, a Singapore-based digital marketing firm, for $2.2 million. This strategic move aims to enhance VCI’s market capabilities, particularly in SEO, paid media, and social media advertising. Roots Digital has shown impressive growth with significant revenue and client retention. The acquisition symbolizes a promising future as VCI expands into the dynamic digital landscape of Singapore.
VCI Global Limited Set to Acquire Roots Digital in $2.2 Million Deal
Exciting news is buzzing in the digital marketing world! VCI Global Limited, a company involved in various sectors including capital market consultancy and cybersecurity, is moving forward with plans to acquire Roots Digital Pte. Ltd., a well-known digital marketing firm based in Singapore. The acquisition, valued at approximately US$2.2 million (or around SG$3 million), marks a significant step for VCI as it seeks to expand its horizons into the bustling Singapore market.
Diving into the Numbers
Now, let’s break down the numbers that underscore this acquisition. The deal reflects a price-to-earnings (P/E) ratio of nearly 3.5. Roots Digital has been doing exceptionally well; in the year 2024, the firm posted a revenue of over US$3 million and a profit nearing US$0.9 million. Even more remarkable is the firm’s growth trajectory—Roots Digital has witnessed a staggering 84% year-on-year revenue growth over the past three years. This performance is a clear indication of the company’s potential and resilience in the ever-evolving digital landscape.
A Peek into Roots Digital’s Expertise
Roots Digital is no stranger to success, having established a reputation for excellence in performance marketing across various digital channels. They’ve earned several awards along the way, showcasing their effectiveness and creativity in the industry. One of their standout achievements is a strong competitive edge derived from a remarkable ability to maintain low customer churn rates, ensuring an average client retention of 24 months. Their impressive client roster includes prominent names like the National University Cancer Institute and Microsoft Corporation.
Support for Local SMEs
Another noteworthy aspect of Roots Digital is its recognition as a pre-approved vendor under the Infocomm Media Development Authority’s (IMDA) Productivity Solutions Grant (PSG). This status allows local small and medium-sized enterprises (SMEs) to receive up to 50% funding for various digital marketing services, further enhancing the value they provide to the community.
Looking Ahead: Opportunities for VCI Global and Roots Digital
The acquisition is not just a purchase; it’s a strategic move with the promise of creating new opportunities for both VCI Global and Roots Digital. By bringing Roots Digital into the fold, VCI aims to bolster its capabilities in areas like SEO, paid media, and social media advertising. This is an exciting time as VCI Global looks to enhance its market presence in Singapore, aiming to tap into the region’s dynamic digital landscape.
The Growing Digital Marketing Market
Speaking of market potential, the global digital marketing sphere is predicted to explode in the coming years, with projections estimating it could reach a whopping US$1.2 trillion by 2033. It’s projected to grow at a compound annual growth rate (CAGR) of 11.22% from 2025 to 2033, driven mainly by increasing internet penetration. With numbers like these, it’s clear that VCI Global is stepping into a lucrative and expanding industry.
Words from Leadership
In light of this significant move, Dato’ Victor Hoo, Group Executive Chairman and CEO of VCI Global, expressed his enthusiasm about the acquisition, stating that it had the potential to expand offerings and add value to clients. His excitement reflects the optimistic outlook for both companies as they join forces.
With all signs pointing to a promising future, this acquisition not only highlights VCI Global’s ambition but also marks a milestone in the ongoing evolution of the digital marketing landscape in Singapore. As these two entities join hands, the industry will surely be watching closely to see how they propel forward together!
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Additional Resources
- GlobeNewswire: VCI Global Moves to Acquire Digital Marketing Firm
- Wikipedia: Digital Marketing
- DM News: Digital Marketing Innovations
- Google Search: Digital Marketing Trends
- Forbes: Prioritize Accessibility in Digital Marketing Strategy
- Encyclopedia Britannica: Advertising
- Search Engine Journal: Digital Marketing Trends
- Google News: Digital Marketing 2025
