January 26, 2025

VCI Global Limited Takes Bold Step with Acquisition of Roots Digital in Singapore

Real Internet Sales

Real Internet Sales is a digital marketing agency located in Columbia, South Carolina. We specialize in website design and development, SEO, social media management, online advertising, AI integration, and workflow automation. Our services also include affiliate marketing and digital strategy.

Real Internet Sales also offer specialized programming for real estate firms, using IDX and RETS feeds to automatically populate MLS properties on their websites for improved property listings and sales. We also work with clients in the restaurant, tourism, and e-commerce industries to enhance their digital presence and streamline operations.

News Summary

VCI Global Limited is set to acquire Singapore-based Roots Digital Pte. Ltd. for approximately US$2.2 million. This acquisition aims to enhance VCI’s market presence and capabilities in the digital marketing landscape, leveraging Roots Digital’s strong revenue growth and established client base in the region. With the global digital marketing market projected to reach US$1.2 trillion by 2033, the acquisition positions VCI for success in this booming market.

VCI Global Limited Takes Bold Step with Acquisition of Roots Digital in Singapore

In an exciting development for the digital marketing landscape, VCI Global Limited, a dynamic company based in Kuala Lumpur, Malaysia, is on the path to finalizing its acquisition of the Singapore-based Roots Digital Pte. Ltd. This deal is valued at approximately US$2.2 million, which translates to around SG$3 million, boasting a competitive price-to-earnings (P/E) ratio of about 3.5.

Roots Digital: A High-Performing Marketing Gem

Roots Digital has made quite a name for itself, reporting over US$3 million in revenue along with close to US$0.9 million in profit for the fiscal year 2024. This impressive achievement showcases an astounding 84% year-on-year revenue growth over the past three years. Specializing in performance marketing across various digital platforms, the firm has maintained a commendable customer retention rate of 24 months, greatly reducing churn.

The firm boasts an impressive clientele in both Malaysia and Singapore, including prestigious organizations like the National University Cancer Institute, Singapore (NCIS), Microsoft Corporation, Parkway College of Nursing and Allied Health, and the Orita Sinclair School of Design & Music. Its reputation and performance make it a pivotal player in the digital marketing arena.

The Advantages of the Acquisition

With this acquisition, VCI Global aims to create synergies between itself and Roots Digital. This move is expected to significantly enhance VCI’s market presence and capabilities in Singapore, especially in areas such as SEO, paid media, and social media advertising. By merging VCI Global’s expertise with Roots Digital’s regional insights, the goal is to deliver substantial returns on investment (ROI) for clients across various critical industries.

Additionally, Roots Digital is a pre-approved vendor under the Infocomm Media Development Authority’s (IMDA) Productivity Solutions Grant (PSG). This allows eligible local small and medium enterprises (SMEs) to secure funding up to 50% for digital marketing services, giving Roots Digital a competitive edge in the market.

A Growing Market Landscape

The global digital marketing market is on the rise, projected to grow to about US$1.2 trillion by 2033. This growth is set to accelerate at a compound annual growth rate (CAGR) of 11.22% from 2025 to 2033, primarily driven by the increasing penetration of the internet. By strategically positioning itself within this booming market, VCI Global stands to benefit immensely from its acquisition of Roots Digital.

Looking to the Future

VCI Global’s move to acquire Roots Digital is not just a short-term fixation but part of a much broader growth strategy. The company has ambitions for future expansions to enhance service offerings and provide greater value for its clientele.

Operating across various sectors including Capital Market Consultancy, Fintech, Real Estate, AI & Robotics, and Cybersecurity, VCI Global has established a strong footprint across the Asia-Pacific region, the United States, Europe, and the Middle East. The excitement surrounding this acquisition has been echoed by VCI Global’s Group Executive Chairman and CEO, Dato’ Victor Hoo, who expressed enthusiasm about expanding into Singapore and exploring more acquisition opportunities in the future.

In a related vein, VCI Global has recently made strategic moves that further emphasize its commitment to growth and innovation. These include investments in AI startups, the acquisition of solar photovoltaic projects, and securing significant contracts to provide AI solutions. Such developments underscore VCI’s dedication to evolving and thriving in an ever-changing business landscape.

As VCI Global embarks on this journey, all eyes will be on how this acquisition unfolds and the ripple effects it will create in the digital marketing sector.