KUALA LUMPUR – VCI Global Limited (NASDAQ:), a diversified holding company, has announced its acquisition of Singapore-based digital marketing firm Roots (TSX:) Digital Pte. Ltd. for approximately $2.2 million. This strategic move is aimed at strengthening VCI Global’s digital marketing capabilities and establishing a stronger presence in the Singapore market. According to InvestingPro data, VCI Global demonstrates strong financial fundamentals with an impressive 70.86% gross profit margin and maintains a healthy balance sheet with more cash than debt.
Roots Digital, known for its performance marketing services across various digital channels, reported significant financial growth with over $3 million in revenue and nearly $0.9 million in profit in 2024, showcasing an 84% year-on-year revenue growth over the past three years. The company’s success is attributed to its high client retention rate and its status as a pre-approved vendor under the Infocomm Media Development Authority’s Productivity Solutions Grant, which allows it to aid local SMEs in obtaining funding for digital marketing services. This acquisition aligns with VCI Global’s own growth trajectory, which InvestingPro analysis shows includes an 89.38% revenue growth in the last twelve months.
The acquisition is expected to create synergies between VCI Global’s existing services and Roots Digital’s regional expertise, potentially delivering substantial ROI for clients in key industries. VCI Global’s Group Executive Chairman and CEO, Dato’ Victor Hoo, expressed enthusiasm for the expansion into Singapore and the potential for future acquisitions to enhance the company’s service offerings.
The global digital marketing market is forecasted to grow to approximately $1.2 trillion by 2033, with an 11.22% CAGR from 2025 to 2033, according to IMARC Group research. This growth is largely driven by increased internet penetration, which has expanded the potential customer base and transformed the marketing landscape. For investors seeking deeper insights, InvestingPro offers comprehensive analysis of VCI Global’s valuation metrics and growth potential, with over 15 additional ProTips available to subscribers.
VCI Global, headquartered in Kuala Lumpur, operates through various sectors including Capital Market Consultancy, Fintech, , AI & Robotics, and Cybersecurity, with a global presence across the Asia-Pacific region, the United States, Europe, and the Middle East.
Roots Digital offers a range of services, including digital advertising and search engine optimization, and is a certified Google (NASDAQ:) Partner.
This article is based on a press release statement, and it is advised that forward-looking statements from the press release are not guarantees of future performance and are subject to risks and uncertainties.
In other recent news, VCI Global Limited has made several strategic moves that highlight its commitment to growth and innovation. The company’s subsidiary, VC AI Limited, recently invested in Marvis Inc., an AI startup specializing in digital clone AI agents. This investment aligns with VCI Global’s strategy of expanding its AI portfolio, particularly in the rapidly growing AI agents market.
Additionally, VCI Global announced plans to acquire and develop solar photovoltaic projects with a total capacity of up to 100MW across Southeast Asia and Europe. This initiative is expected to generate around $200 million in revenue over two decades. In line with its commitment to AI technology, VCI Global also secured a $24 million contract to provide AI hardware and software for a data center project in Malaysia, awarded by Hexatoff Group Sdn. Bhd.
Furthermore, through its subsidiary, V-Gallant, VCI Global won a $16 million contract to build an AI-enabled live streaming platform for a Malaysian e-commerce company. This platform is expected to enhance user experience by integrating NVIDIA (NASDAQ:) H200 Tensor Core GPUs and AI software. These are recent developments in the company’s ongoing growth and transformation journey.
In terms of leadership, VCI Global recently appointed Victor Lee as its new executive director, bringing his 28 years of experience in the private equity sector to the company. Lastly, VCI Global concluded its At-The-Market equity offering program, raising approximately $1.77 million, and secured an $18 million contract to list four Malaysian companies on the stock exchange.
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