From Joe Tucci’s recent interview on Forbes.comPosted in the “Infoimaging” section no less. Perhaps Document Imaging Report is too narrow of a name. Seriously, does InfoImaging Report turn you on? I kind of like it.
Anyways, here’s Tucci’s quote on Captiva from the Forbes story. (preceded by the question.)
FDC: Speaking of which, why did you decide to pay $375 million for Captiva?
JT: Captiva is clearly a big worldwide leader in image and image-capture management. In round numbers, Captiva brings in about $100 million in revenue. But still no company has a 20% share of this market. It’s very fragmented. So we’re adding beef to our market share. We’ll capture the images, and then we’ll make sure all these images are properly archived. This is critical to us.
First off we love the way the question says $375 million. I mean what’s an extra $100 million (we assume this was a typo, as the announced price of the deal was $275 million) when you are talking to EMC. Heck, three years ago, they could have bought InputAccel for like $10 million probably, but they really didn’t seem to bat an eyelash when we asked about that. These guys netted over $300 million in income last quarter.
We also like the 20% market share part. Where’s that coming from? Did they pick it up from DIR, from Harvey Spencer Assocaites perhaps? Just cuious as to what Mr. Tucci is reading these days.