VCI Global is acquiring digital marketing firm Roots Digital for $2.2 million, enhancing its presence in Singapore.
Quiver AI Summary
VCI Global Limited has announced its acquisition of Roots Digital Pte. Ltd., a digital marketing firm, for approximately US$2.2 million as part of its expansion into the Singapore market. The acquisition is based on strong financials from Roots Digital, which reported over US$3 million in revenue and significant growth in recent years. Roots Digital is recognized for its effective performance marketing and customer retention strategies, serving notable clients including Microsoft and the National University Cancer Institute in Singapore. The move is expected to enhance VCI Global's capabilities in digital marketing and create synergies with its existing businesses. VCI Global anticipates that this acquisition will lead to future growth opportunities and strengthen its market position in a rapidly expanding digital marketing sector. Dato’ Victor Hoo, CEO of VCI Global, expressed excitement about the potential for future acquisitions and enhanced client offerings.
Potential Positives
- VCI Global is advancing the acquisition of Roots Digital Pte. Ltd., marking its strategic entry into the Singapore market, which could enhance its competitive position in the fast-growing digital marketing sector.
- The acquisition is valued at approximately US$2.2 million with a low price-to-earnings ratio of nearly 3.5, indicating a potentially lucrative investment based on Roots Digital's strong financial performance.
- Roots Digital reported over US$3 million in revenue and nearly US$0.9 million in profit in 2024, demonstrating its successful business model and strong growth trajectory with 84% revenue growth year-on-year.
- The acquisition is expected to create synergies that strengthen VCI Global's capabilities in key areas like SEO, paid media, and social media advertising, likely enhancing its service offerings and value to clients.
Potential Negatives
- The acquisition of Roots Digital for approximately US$2.2 million reflects a low price-to-earnings (P/E) ratio of nearly 3.5, which may raise concerns about the valuation and potential growth prospects of the acquired company.
- The press release emphasizes the company's reliance on potential future acquisitions to broaden its offerings, which could indicate a lack of immediate growth or differentiation in its current business strategy.
- There is a cautionary note regarding forward-looking statements, which highlights ongoing risks and uncertainties that may affect the company's ability to achieve profitable operations and effective market expansion.
FAQ
What is VCI Global's recent acquisition?
VCI Global has announced its acquisition of Roots Digital Pte. Ltd., a digital marketing firm in Singapore, for approximately US$2.2 million.
What are Roots Digital's financial highlights?
Roots Digital achieved over US$3 million in revenue and nearly US$0.9 million in profit in 2024, with 84% year-on-year revenue growth.
How does this acquisition benefit VCI Global?
This acquisition strengthens VCI Global's capabilities in SEO, paid media, and social media advertising, expanding its market presence in Singapore.
What services does Roots Digital provide?
Roots Digital specializes in digital marketing, offering services like digital advertising, SEO, web design, and is a certified Google Partner.
Why is this acquisition strategic for VCI Global?
The move is expected to create synergies that enhance VCI Global's offerings, adding value to clients and paving the way for future growth.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$VCIG Hedge Fund Activity
We have seen 3 institutional investors add shares of $VCIG stock to their portfolio, and 4 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- VIRTU FINANCIAL LLC removed 36,128 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $272,621
- GEODE CAPITAL MANAGEMENT, LLC removed 22,854 shares (-96.2%) from their portfolio in Q3 2024, for an estimated $3,519
- SUSQUEHANNA INTERNATIONAL GROUP, LLP removed 16,225 shares (-97.6%) from their portfolio in Q3 2024, for an estimated $2,498
- TWO SIGMA SECURITIES, LLC added 13,256 shares (+inf%) to their portfolio in Q3 2024, for an estimated $100,029
- HRT FINANCIAL LP added 1,836 shares (+inf%) to their portfolio in Q3 2024, for an estimated $282
- BLACKROCK, INC. removed 1,800 shares (-97.9%) from their portfolio in Q3 2024, for an estimated $277
- RENAISSANCE TECHNOLOGIES LLC added 976 shares (+inf%) to their portfolio in Q3 2024, for an estimated $150
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Full Release
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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VCI GLOBAL LIMITED