VCI Global Limited (NASDAQ: VCIG) today announced it has signed a Memorandum of Agreement (“MOA”) which summarizes the principal terms of its proposed 70% acquisition of LOCUS-T Sdn Bhd (“LOCUS-T”) by V Capital Kronos Berhad (“V Capital Kronos”), a wholly owned subsidiary of VCI Global for a purchase consideration of Ringgit Malaysia Thirteen Million Four Hundred and Forty Thousand (RM13,440,000.00) (equivalent to approximately US$3,028,391, based on the exchange rate of US$1.00: RM4.4380 as at April 20, 2023). As part of the principal terms of the acquisition, V Capital Kronos will also be granted a first right of refusal to purchase the remaining 30% stake in LOCUS-T from its existing vendor should they decide to sell.
LOCUS-T is a marketing agency which specialises in digital marketing industry with a focus offering on marketing technology and solutions, such as Google SEO (Search Engine Optimization), Google Ads, Facebook Ads and Website Design based in Malaysia. It has over 20 years of experience and has served over 7,000 SMEs and MNCs clients since inception. It currently has an active client portfolio of over 1,000 SMEs and MNCs clients and is one of the few agencies in Malaysia carrying both the Google Premier Partner and Meta Business Partner.
“The acquisition of LOCUS-T allows us to immediately tap into its existing large portfolio of clients which range from Small Medium Enterprises and Multinational industry leaders such as Amway, 7-Eleven, Sports Planet, SP Setia just to name a few. With the huge portfolio of clients, VCI Global will be able to cross-sell our business and technology consultancy business to LOCUS-T’s existing clients and vice versa. This acquisition is highly synergetic to our existing consultancy business as it will also assist VCI Global’s existing clients to leverage on LOCUS-T’s digital marketing capability to grow our existing client’s business,” said Dato’ Victor Hoo, Chairman and Group Director of VCI Global.
In addition, the acquisition will also bring about a new suite of consultancy service in the digital marketing space complementing VCI Global’s existing business and technology consultancy business alongside creating a new business segment and revenue stream for VCI Global. As the world move towards digitalization, more and more businesses will embrace digitalization hence this acquisition will further enhance and reinforce VCI Global’s service offering to further promote client stickiness as the Company strengthens its service offering to add value to its existing and potential clients.
About VCI Global Limited
VCI Global is a multi-disciplinary consulting group with key advisory practices in the areas of business and technology. The Company provides business and boardroom strategy services, investor relation services, and technology consultancy services. Its clients range from small-medium enterprises and government-linked agencies to publicly traded companies across a broad array of industries. VCI Global operates solely in Malaysia, with clients predominantly from Malaysia, but also serves some clients from China, Singapore, and the US.
