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VCI Global Limited Expands into Singapore’s Digital Marketing Scene

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News Summary

VCI Global Limited is set to acquire Roots Digital Pte. Ltd., a prominent digital marketing firm in Singapore, in a deal valued at US$2.2 million. This acquisition aims to strengthen VCI Global’s position in the growing digital marketing landscape. Roots Digital has demonstrated impressive performance with significant revenue growth and a strong customer retention rate. The acquisition is expected to enhance VCI’s capabilities in various digital marketing areas, marking a significant milestone for both companies.

Exciting News: VCI Global Limited is Expanding into Singapore’s Digital Marketing Scene

In a move that’s creating quite a buzz, VCI Global Limited (NASDAQ: VCIG) is set to acquire Roots Digital Pte. Ltd., a well-respected digital marketing firm. This deal, valued at about US$2.2 million (or roughly SG$3 million), signifies VCI Global’s ambitious plans to strengthen its foothold in the thriving digital marketing landscape of Singapore.

A Look at the Numbers

The acquisition price reflects a price-to-earnings (P/E) ratio of nearly 3.5, which is a compelling indicator of the potential return on investment. Roots Digital has shown impressive performance, bringing in over US$3 million in revenue and nearly US$0.9 million in profit for the year 2024. What’s even more impressive is that the firm has achieved an incredible 84% year-on-year revenue growth over the past three years. It’s clear that Roots Digital isn’t just any run-of-the-mill marketing firm; they’re making waves!

What Makes Roots Digital Stand Out?

Roots Digital is not only known for its expertise in performance marketing across various digital channels, but it also boasts a strong focus on customer satisfaction. The firm maintains an average customer retention rate of 24 months, and they’re recognized for their efforts to reduce customer churn. Some of their notable clients include well-respected institutions such as the National University Cancer Institute, Singapore, Microsoft Corporation, Parkway College of Nursing and Allied Health, and the Orita Sinclair School of Design & Music.

Funding Advantage

Root Digital’s status as a pre-approved vendor under the Infocomm Media Development Authority’s (IMDA) Productivity Solutions Grant (PSG) is another feather in its cap. This grant allows eligible local SMEs to secure up to 50% funding for digital marketing services, making it a win-win situation for clients seeking quality marketing solutions.

The Bigger Picture

The acquisition is expected to create exciting synergies that will help VCI Global enhance its capabilities in key areas like SEO, paid media, and social media advertising. With the global digital marketing market projected to grow to about US$1.2 trillion by 2033, and with a compound annual growth rate (CAGR) of 11.22% from 2025 to 2033, this acquisition comes at a pivotal time.

Future Prospects

Dato’ Victor Hoo, the Group Executive Chairman and CEO of VCI Global, expressed optimism about this acquisition. He believes it will pave the way for future acquisitions that will broaden their offerings and add more value for clients. The company has a solid commitment to fostering innovation and creating exceptional value across the Asia-Pacific region and beyond.

Looking Ahead

While this recent acquisition is promising, it’s essential to proceed with caution. As highlighted in their press release, there are uncertainties and risks associated with forward-looking statements regarding the company’s future performance. However, the strategic steps being taken are exciting for both VCI Global and the digital marketing landscape in Singapore.

In conclusion, VCI Global’s move to acquire Roots Digital Pte. Ltd. marks an important milestone in their quest to become a major player in the digital marketing arena. As they blend their established expertise with Roots Digital’s regional insights, many will be watching to see how this partnership unfolds. Stay tuned for more updates on this exciting journey!