News Summary
VCI Global Limited is set to acquire Singapore-based Roots Digital for US$2.2 million. The deal is strategically aimed at enhancing VCI’s presence in the digital marketing sector, leveraging Roots Digital’s strong performance marketing capabilities and impressive client list. With significant growth projections for the digital marketing industry, this acquisition marks a crucial step in VCI Global’s broader expansion strategy.
VCI Global Limited Moves to Acquire Roots Digital for US$2.2 Million
Exciting news is coming from the digital marketing world! VCI Global Limited, a well-established firm with its home base in Kuala Lumpur, Malaysia, is taking significant steps to acquire the Singapore-based digital marketing company, Roots Digital Pte. Ltd. This acquisition is reported to be valued at around US$2.2 million, which is equivalent to nearly SG$3 million.
Strong Financial Performance
Now, here’s the juicy part—the numbers! Roots Digital has shown remarkable financial growth recently, boasting more than US$3 million in revenue and an impressive profit nearing US$0.9 million for the year 2024. What’s even more impressive is that this represents an astounding 84% year-on-year revenue growth over the past three years! It’s clear that Roots Digital is moving in the right direction.
What Does Roots Digital Bring to the Table?
So, what exactly does Roots Digital do? This company specializes in performance marketing across a variety of digital platforms. They have built a solid reputation, particularly for maintaining an average customer retention rate of 24 months, which effectively minimizes churn—a very positive sign in this industry!
Roots Digital’s impressive client list includes major names like the National University Cancer Institute, Singapore (NCIS), Microsoft Corporation, and Parkway College of Nursing and Allied Health. Not only that, but they are also recognized as a pre-approved vendor under the Infocomm Media Development Authority’s (IMDA) Productivity Solutions Grant (PSG), which means eligible local SMEs can secure up to 50% funding for digital marketing services. Pretty neat, right?
Anticipating Synergies and Growth
With this acquisition, VCI Global aims to create valuable synergies with Roots Digital to boost their presence and capabilities in the Singapore market. The focus will be on enhancing services in areas like SEO, paid media, and social media advertising. By combining VCI Global’s expertise with Roots Digital’s regional knowledge, the goal is to deliver substantial Return on Investment (ROI) for clients across several key industries.
A Bright Future Ahead
The digital marketing landscape is bright, with the global market projected to skyrocket to approximately US$1.2 trillion by 2033. There’s a compound annual growth rate (CAGR) of 11.22% expected between 2025 and 2033, largely fueled by increased internet penetration. It’s a rapidly evolving industry, and VCI Global’s acquisition moves place them in a prime position to capitalize on this growth.
VCI Global’s Broader Vision
This strategic step is not just limited to this acquisition; it forms part of VCI Global’s larger growth strategy which may include future expansions aimed at enhancing their service offerings and adding even more value for their clients. Besides their venture into digital marketing, VCI Global is also broadening its horizons by operating in sectors like Capital Market Consultancy, Fintech, Real Estate, AI & Robotics, and Cybersecurity. They have already built a strong presence across various regions, including Asia-Pacific, the U.S., Europe, and the Middle East.
A Word from the Top
VCI Global’s Group Executive Chairman and CEO, Dato’ Victor Hoo, expressed his enthusiasm for the expansion into Singapore. He highlighted the exciting potential for future acquisitions, signaling that this is just the beginning of a promising journey for the company.
In addition to this acquisition, VCI Global hasn’t been sitting still. They’ve recently made several strategic moves, such as investing in AI startups, acquiring solar photovoltaic projects, and securing significant contracts to provide innovative AI solutions. This only emphasizes their continuous commitment to growth and innovation.
In conclusion, there’s a lot to look forward to as VCI Global advances its acquisition of Roots Digital. With all the promising developments and growth opportunities ahead, it seems that both companies are going to make quite the splash in the digital marketing arena!
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Additional Resources
- GlobeNewswire: VCI Global Advances Acquisition of Singapore-based Roots Digital
- Investing.com: VCI Global Expands into Singapore
- Business Insider: The Curious Journey of Qurious Media
- Statista: Singapore Digital Advertising Spending
- Wikipedia: Digital Marketing
