This Acquisition Strengthens VCI Global's Digital Marketing Capabilities While Enhancing the Company's Presence in the Singapore Market
KUALA LUMPUR, Malaysia, Jan. 23, 2025 (GLOBE NEWSWIRE) -- 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.
About VCI Global Limited
VCI Global is a diversified holding company headquartered in Kuala Lumpur, Malaysia. The Company operates through five core businesses: Capital Market Consultancy, Fintech, Real Estate, AI & Robotics, and Cybersecurity. In Capital Market Consultancy, we provide IPO solutions, investor relations (IR) and public relations (PR) consultancy, and M&A consultancy. Our Fintech arm offers a proprietary financing platform. In Real Estate, we offer specialized real estate consultancy services. The AI business delivers GPU servers, GPU cloud computing services, AI and large language model (LLM) solutions, while the Robotics segment focuses on post-harvest robotics systems. Our Cybersecurity segment provides comprehensive cybersecurity consultancy services and solutions. Committed to fostering innovation and delivering exceptional value, VCI Global has established a strong presence across the Asia-Pacific region, the United States, Europe, and the Middle East, driving growth and transformation on a global scale.
For more information on the Company, please log on to https://v-capital.co/.
About Roots Digital Pte. Ltd.
Roots Digital Pte. Ltd. is a digital marketing company, operating in Singapore, servicing clients mainly from Singapore and Malaysia. The Company obtains its business by providing various services including digital advertising, search engine optimization, web maintaining, web designing and more. It is also a certified Google Partner, specializing in Search, Display, Mobile, and Video Ads.
For more information about Roots Digital, please visit: https://www.rootsdigital.com.sg/.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements that are subject to various risks and uncertainties. Such statements include statements regarding the Company's ability to grow its business and other statements that are not historical facts, including statements which may be accompanied by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. These forward-looking statements are based only on our current beliefs, expectations, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict and many of which are outside of our control. Therefore, you should not rely on any of these forward-looking statements. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including without limitation, the Company's ability to achieve profitable operations, customer acceptance of new products, the effects of the spread of coronavirus (COVID-19) and future measures taken by authorities in the countries wherein the Company has supply chain partners, the demand for the Company's products and the Company's customers' economic condition, the impact of competitive products and pricing, successfully managing and, general economic conditions and other risk factors detailed in the Company's filings with the United States Securities and Exchange Commission (“SEC”). The forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake any responsibility to update the forward-looking statements in this release, except in accordance with applicable law.
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