ASX 200 stock Technology One halted following cyber attack

There has been yet another cyber attack on an ASX 200 business.

| More on:
Woman holding out her hand, symbolising a trading halt.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • A cyber incident has impacted ASX 200 stock TechnologyOne
  • It's reported its customer-facing software platform has not been impacted
  • But TechnologyOne shares have gone into a trading halt as the company carries out its investigation

TechnologyOne Ltd (ASX: TNE) shares have been halted after the S&P/ASX 200 Index (ASX: XJO) tech stock revealed that it is responding to a cyber attack.

There have been a number of cyber attacks on Australian businesses in recent times, including Medibank Private Limited (ASX: MPL), Optus, Latitude Group Holdings Ltd (ASX: LFS), and IPH Ltd (ASX: IPH).

For readers who don't know, TechnologyOne is an enterprise resource planning (ERP) software business for organisations. Among its customers are the University of Melbourne, the Australian Bureau of Statistics (ABS), Noosa Council, and Brookfield.

Cyber attack on TechnologyOne

The ASX 200 tech stock said it has detected "an unauthorised third-party acted illegally to access its internal Microsoft 365 back-office system".

It emphasised that its customer-facing software as a service (SaaS) platform is not connected to the Microsoft 365 system and therefore has not been impacted.

But, the company has "acted with urgency" to investigate the issue, including initiating its cyber response strategy, appointing third-party experts, and isolating affected systems.

TechnologyOne has reported the incident to the relevant authorities and continues to "not only comply but go beyond its regulatory obligations", it says.

The business said in its statement to the ASX that once the investigation is "further progressed", it will be in a position to contact those who "may be affected with them on the ongoing safety of their data".

The ASX 200 stock apologised to impacted individuals for any concern this incident may cause. It will provide further updates through the ASX and on its website as they become available.

How long will TechnologyOne shares remain halted?

The business has requested that the trading halt continue until the earlier of a further announcement by the company or the start of normal trading on Friday 12 May 2023.

What could this mean for the ASX 200 stock?

Looking at the hack effect on the Medibank share price, it caused a sizeable drop when trading resumed. However, the private health insurer has now recovered amid return policyholder growth.

But the reaction for the TechnologyOne share price could depend on the details and what the impacts of the cyber incident are.

Time will tell how much of a long-term impact this has on the business. Prior to this, the ASX 200 stock had risen by close to 50% over the last 12 months, with strong growth of revenue and profit in its recent financial results.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Technology One. The Motley Fool Australia has recommended IPH and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

A woman screams and holds her hands up in frustration.
Share Market News

Why is short interest in Sayona Mining shares growing?

Why won't short sellers leave this lithium miner alone?

Read more »

A woman in a bright yellow jumper looks happily at her yellow piggy bank representing bank dividends and in particular the CBA dividend
Bank Shares

CBA shares hit another new high! Too late to buy?

At today's new record price, CBA's market capitalisation is just $1 billion short of the ASX 200's most valuable stock,…

Read more »

A group of stockbrokers sit in a room with several computer screens in front of them as they discuss the Zip share price and Zip's merger with Sezzle
Broker Notes

Why these 3 ASX 200 shares just gained significant broker upgrades

The brokers just boosted their outlooks for these ASX 200 shares. But why?

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Energy Shares

Paladin Energy shares sink on $1.25b uranium acquisition news

Investors haven't responded positively to the news.

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Broker Notes

Buy this ASX 200 stock for 'stability and growth potential'

One analyst has good things to say about this stock.

Read more »

Coles Woolworths supermarket warA man and a woman line up to race through a supermaket, indicating rivalry between the mangorsupermarket shares

Can Coles shares outperform the ASX 200 Index from here?

Can Coles shares outperform the ASX 200 Index? Here's why I think so.

Read more »

A female executive smiles as she carries out business on her mobile phone.
Broker Notes

Buy Telstra shares due to its 'excessive' discount

This telco giant's shares could be unnecessarily cheap according to Bell Potter.

Read more »

Smiling man with phone in wheelchair watching stocks and trends on computer
Share Market News

5 things to watch on the ASX 200 on Tuesday

A better day is expected for Aussie investors today. Here's what's happening.

Read more »