VCI Global Limited (NASDAQ: VCIG) (“VCI Global,” or the “Company”), today announced that it is advancing the acquisition of Roots Digital Pte. Ltd. (“Roots Digital”), a digital marketing firm, marking its entry into Singapore. The acquisition, valued at approximately US$2.2 million (or approximately SG$3 million), reflects a price-to-earnings (P/E) ratio of nearly 3.5. This acquisition is driven by Roots Digital’s strong financial performance, having achieved over US$3 million in revenue and nearly US$0.9 million in profit in 2024, with an impressive 84% year-on-year revenue growth over the past three years.
Roots Digital is an award-winning digital agency that specializes in performance marketing across various digital channels. The digital marketing firm distinguishes itself from competitors by reducing customer churn and maintaining an average retention rate of 24 months. The firm primarily serves clients in Malaysia and Singapore, including well-known names such as the National University Cancer Institute, Singapore (NCIS), Microsoft Corporation, Parkway College of Nursing and Allied Health, and Orita Sinclair School of Design & Music, among others. Additionally, Roots Digital is pre-approved vendor under the Infocomm Media Development Authority’s (IMDA) Productivity Solutions Grant (PSG), enabling it to help eligible local SMEs secure up to 50% funding for digital marketing services. This recognition highlights Roots Digital’s proven track record for its products.
The acquisition opens-up new opportunities for both VCI Global and Roots Digital, fostering synergies and expanding market presence in Singapore. Through this acquisition, VCI Global strengthens its capabilities in areas like SEO, paid media, and social media advertising, while enhancing its footprint in the Singapore market. By Combining VCI Global’s expertise with Roots Digital regional insights, the strategic move is set to deliver substantial ROI for the clients across key industries.
The global digital marketing market is projected to grow to approximate US$1.2 trillion by 2033, reflecting a compound annual growth rate (CAGR) of 11.22% from 2025 to 2033. This growth is largely driven by the increasing internet penetration, as reported by IMARC Group’s research. As internet penetration rises, the potential customer base has expanded, enabling marketers to utilize a variety of online platforms—such as social media, search engines, email, and websites—to connect with users and promote their offerings. This shift has transformed the marketing landscape, prompting businesses to allocate more resources to digital marketing in order to remain competitive in an increasingly digital world.
“With this acquisition, we are excited to expand in Singapore, with this move paving the way for future acquisitions that will broaden our offerings and add greater value to clients. The acquisition also serves as a strategic move that will synergize our other key strengths, such as IPO consultancy and AI-related services,” said Dato’ Victor Hoo, Group Executive Chairman and CEO of VCI Global.
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