Brookfield Business Partners Provides Update on Restoration of Systems at its Dealer Software and Technology Services Operation
Brookfield Business Partners (NYSE: BBUC, BBU; TSX: BBUC, BBU.UN) provided an update on restoring systems at CDK Global, its dealer software and technology services operation. On June 19, CDK detected unauthorized cyber activity and swiftly shut down systems, engaged third-party experts, and notified law enforcement. Substantially all customers have been brought back onto CDK's core dealer management system ahead of the U.S. July 4 holiday weekend. The company is working to restore other applications, including CRM and Services solutions. CDK is actively supporting its customers' sales and service efforts during this period. Brookfield does not expect this incident to materially impact its business. CDK, acquired by Brookfield in 2022, leads in providing software solutions to automotive dealers and has invested significantly in technology and product offerings.
- CDK has successfully restored its core dealer management system for substantially all customers.
- Brookfield does not expect the cyber incident to have a material impact on its business.
- CDK has made significant investments in its technology and product offerings since its acquisition in 2022.
- CDK experienced unauthorized cyber activity, impacting its operations.
Insights
The recent cyber incident at CDK Global highlights how critical cybersecurity measures are for companies involved in software services. Unauthorized cyber activity can disrupt operations and shake customer confidence. CDK's quick response by shutting down systems and engaging third-party experts is commendable and aligns with best practices in the industry. However, the incident's occurrence itself may raise concerns about the robustness of their initial cybersecurity defenses. Companies in similar domains should take this as a reminder to continuously evaluate and upgrade their security protocols.
From an investor's perspective, understanding the nature of this attack and the steps taken to mitigate it is crucial. Any future revelations regarding the breach's specifics could impact CDK and Brookfield Business Partners' stock. Additionally, how CDK plans to bolster its cybersecurity measures moving forward will be critical to regaining and maintaining stakeholder trust.
The swift restoration of CDK Global's systems before a major U.S. holiday underlines the operational resilience of the company. Despite the cyber incident, CDK managed to restore its core dealer management system, which is important for their clients' operations. This response helps cushion potential adverse effects on customer relationships and business continuity.
Investors should note that while the company states the incident won't have a material impact, it's essential to monitor any follow-up reports on customer feedback and potential financial repercussions. Additionally, the cyber incident might indirectly prompt competitors to enhance their security, creating a more robust industry standard, from which CDK could benefit in the long term if they continue to improve their defenses and customer trust.
Brookfield Business Partners' update emphasizes that they do not expect the cyber incident to have a material impact on their financials. This statement can assure investors to some extent, but it's important to remain cautious. Significant investments made in CDK's technology since their acquisition in 2022 suggest a commitment to long-term growth and resilience. However, the incident could still incur costs related to the investigation, remediation and potential fines or compensations, which may subtly affect financial performance in the short term.
Retail investors should closely watch upcoming financial reports for any unexpected expenses tied to this event. The company's ability to maintain its market position and customer satisfaction post-incident will be key indicators of its future stability and growth trajectory.
BROOKFIELD, NEWS, July 03, 2024 (GLOBE NEWSWIRE) -- Brookfield Business Partners (NYSE: BBUC, BBU; TSX: BBUC, BBU.UN) announced today an update on the restoration of systems at its dealer software and technology services operation, CDK Global (“the business” or “CDK”).
On June 19, CDK detected and promptly responded to unauthorized cyber activity on its network. CDK proactively shut all systems down, engaged third-party experts to address and investigate the issue and notified law enforcement.
CDK has successfully brought substantially all customers back onto its core dealer management system in advance of the July 4 holiday weekend in the U.S. The business is also working to bring back online other applications including its Customer Relationship Management and Services solutions. In the interim, CDK continues to actively engage with its customers to support their sales and service efforts.
We do not expect this incident to have a material impact on Brookfield Business Partners.
CDK is the leading provider of software solutions to automotive dealers. Since our acquisition in 2022, CDK has made significant investment in its technology and product offering and is committed to continuing to be a best-in-class partner to its customers.
About Brookfield Business Partners
Brookfield Business Partners is a global business services and industrials company focused on owning and operating high-quality businesses that provide essential products and services and benefit from a strong competitive position. Investors have flexibility to invest in our company either through Brookfield Business Corporation (NYSE, TSX: BBUC), a corporation, or Brookfield Business Partners L.P. (NYSE: BBU; TSX: BBU.UN), a limited partnership. For more information, please visit https://bbu.brookfield.com.
Brookfield Business Partners is the flagship listed vehicle of Brookfield Asset Management’s Private Equity Group. Brookfield Asset Management is a leading global alternative asset manager with over
For more information, please contact:
| Media: | Investors: | ||
| Marie Fuller | Alan Fleming | ||
| Tel: +44 207 408 8375 | Tel: +1 (416) 645-2736 | ||
| Email: marie.fuller@brookfield.com | Email: alan.fleming@brookfield.com |
FAQ
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