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Kofax Releases Market Analysis by Independent Research Firm on Growth Potential for MCC, BPM, and SPA Markets

Kofax, plc (LSE: KFX), a leading provider of smart process applications for the business critical First Mile™ of customer interactions, today reported that a commissioned study conducted by Forrester Consulting, a leading global research and consulting firm, on behalf of Kofax identified market sizing and growth forecasts for: the multichannel capture (MCC), the business process management (BPM), and information intensive smart process application (SPA) markets through 2016. The December 2012 study found that the combined market opportunity for software and maintenance services at the end-user level will grow from $7.1 billion in 2012 to $14.0 billion in 2016 at a compound annual growth rate (CAGR) of 18.5 percent, effectively doubling in four years. Kofax has exceptional strengths in these three markets and their combined growth presents a significant opportunity for the Company.

Forrester found that the multichannel capture and business process management markets are separate; however, smart process applications overlap with both and cover new space. SPA is a nascent market that shows positive, exponential growth in the short-to-medium term as enterprises shift their spending patterns from developing their own applications in-house to purchasing them from software vendors.

"Kofax is well positioned to capitalize on the information intensive SPAs market as it leverages our core strengths in capture, BPM, dynamic case management, and mobile solutions,” commented Reynolds C. Bish, chief executive officer at Kofax. “SPAs accurately describe how Kofax has and continues to help organizations improve the business critical First Mile of customer interactions by providing a fluid bridge between their systems of engagement and systems of record.”

Research Highlights

Forrester used both existing data and primary research to size and analyze the MCC, BPM, and SPA markets. The primary research included a multi-country survey with IT budget holders across the United States, United Kingdom, France, Germany, and Russia.

Results revealed that the global MCC market, including production, on-demand, and mobile capture, is forecasted to grow from $2.1 billion in 2012 at a 4.5 percent CAGR to $2.5 billion in 2016. A significant catalyst is mobile capture, with 26 percent of survey respondents planning to implement mobile capture in 12-24 months, and 47 percent planning to expand existing implementations.

The BPM market includes traditional BPM, dynamic case management, and integration centric BPM solutions. Forrester states that it is in a late growth phase and focused where business processes are considered chaotic, broad, and burdened with content. Forrester estimated the global BPM market will grow from $4.4 billion in 2012 at a 14.6 percent CAGR to $7.6 billion in 2016.

Forrester found that SPAs is a new category of application software designed to support industry specific business activities that are people intensive, highly variable, loosely structured, and subject to frequent change. SPAs automate both structured and unstructured work activities in support of collaborative processes. SPAs contain all or most of the following core features: document and content capture for incoming documents, forms, and faxes relevant to the business activity; embedded analytical tools designed for the business activity; collaboration capabilities for people to create content needed for the activity; and BPM tools for executing the steps involved in the activity.

These findings are summarized below:

                                         
Segment 2012 2016 CAGR
 
Capture $2.1B $2.5B 4.5%
BPM $4.4B $7.6B 14.6%
Vertical SPAs $0.6B $3.9B 59.7%
 
Total $7.1B $14.0B 18.5%
 

Bish continued, “Our vertical SPAs strategy – first initiated almost 12 months ago – is focused on leveraging our capture, BPM, dynamic case management, and mobile capabilities to provide packaged solutions for information intensive customer engagement needs across many of our existing vertical markets. Our opportunity in this market arises from the convergence of Kofax’s heritage and vision in our product development and acquisition strategies.”

About Kofax

Kofax, plc (LSE: KFX) is a leading provider of innovative smart capture and process automation software and solutions for the business critical First Mile of customer interactions. These begin with an organization’s Systems of Engagement, which generate real time, information intensive communications from customers, and provide a fluid bridge to their Systems of Record, which are typically large scale, rigid enterprise applications and repositories not easily adapted to more contemporary technology. Success in the First Mile can dramatically improve an organization’s customer experience and greatly reduce operating costs, thus driving increased competitiveness, growth, and profitability. Kofax software and solutions provide a rapid return on investment to more than 20,000 customers in banking, insurance, government, healthcare, business process outsourcing, and other markets. Kofax delivers these through its own sales and service organization, and a global network of more than 800 authorized partners in more than 75 countries throughout the Americas, EMEA, and Asia Pacific. For more information, visit kofax.com.

© 2013 Kofax, plc. “Kofax” is a registered trademark and “First Mile” is a trademark of Kofax, plc.

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