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EQT AB (publ) Half-year Report 2024

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STOCKHOLM, July 18, 2024 /PRNewswire/ — Well positioned as markets improve

“In the first half of 2024, EQT successfully closed several fundraisings, despite a challenging environment. We launched new strategies and further strengthened our private wealth platform. Investment activity continued at a good pace across strategies, and we are actively pursuing realizations, building on our strong track record of providing liquidity for our clients,” Christian Sinding, CEO and Managing Partner.

Highlights for the period Jan-Jun 2024 (Jan-Jun 2023)

Financial

During the period, management fees increased due to closed out fundraising commitments, while carried interest was lower due to lower volumes of closed realizations. Adjusted margins increased due to higher FAUM, operational efficiency and scaling effectsAdjusted Total Revenue amounted to EUR ‌1,088‌m (EUR ‌‌1,019‌m), an increase of ‌7%‌. Reported Total Revenue* amounted to EUR ‌‌‌1,232‌m (EUR ‌‌1,115‌m). Management fees increased by ‌‌13%‌Adjusted Carried Interest and Investment Income amounted to EUR ‌41‌m (EUR ‌‌‌‌89‌m). Reported Carried Interest and Investment Income* amounted to EUR ‌‌‌184‌m (EUR ‌‌‌185‌m)Adjusted EBITDA amounted to EUR ‌‌609‌m (EUR ‌‌‌555‌m), corresponding to an Adjusted EBITDA margin of ‌‌56%‌ (‌‌54%‌). Reported EBITDA* amounted to EUR ‌562‌m (EUR ‌‌‌‌‌405‌m), corresponding to a Reported EBITDA margin* of ‌‌‌‌46%‌ (‌‌‌‌36%‌)Adjusted Fee-related EBITDA amounted to EUR ‌‌‌568‌m (EUR ‌‌‌‌466‌m), corresponding to an Adjusted Fee-related EBITDA margin of ‌‌‌54%‌ (‌‌‌50%‌)Adjusted Net Income from continuing operations amounted to EUR ‌‌500‌m (EUR ‌‌‌‌450‌m). Reported Net Income from continuing operations* amounted to EUR ‌‌‌282‌m (EUR ‌‌‌120‌m)Adjusted Earnings Per Share for continuing operations before and after dilution amounted to EUR ‌‌0.422‌ (EUR ‌‌‌0.379‌) and EUR ‌‌0.422‌ (EUR ‌‌0.379‌), respectively. Earnings Per Share for continuing operations* before and after dilution amounted to EUR ‌0.238‌ (EUR ‌‌‌‌‌‌0.101‌) and EUR ‌‌‌‌‌0.238‌ (EUR ‌‌‌‌‌0.101‌), respectively

* As of January 1, 2024, EQT has, in accordance with IAS 8, changed accounting principles relating to carried interest, see Note 6. Adjusted Revenue is unchanged compared to prior periods
Note: The adjusted metrics are alternative performance metrics for the EQT AB Group. For a full reconciliation, please refer to section “Alternative performance measures”

Strategic

EQT X closed at EUR 22bn in total commitments, of which EUR 21.7bn are fee-generating assets under management, hitting the hard cap. EQT’s Private Capital strategies across the world have completed fundraises in 2024 that combine to more than EUR 26bn in total commitmentsEQT hosted a Capital Markets Day, re-confirming its revenue growth and Adjusted EBITDA margin targets, providing further color on its Adjusted Fee-related EBITDA margin ambition, and refining its dividend growth target to be on a per share basisPreparations progressed for BPEA IX and for a transition infrastructure strategyEQT continued to enhance its focus on the Private Wealth area through senior team hires, branding efforts, the addition of further EQT Nexus distribution banks, and preparations for new products in different geographiesEQT continued to elevate its Capital Markets team across debt and equity, adding further focus on exit and IPO excellence

Fundraising

FAUM increased to EUR ‌133‌bn (EUR ‌‌126‌bn). Total AUM was EUR ‌246‌bn (EUR ‌‌‌224‌bn). Gross inflows amounted to EUR ‌‌7‌bn and were primarily driven by closed out commitments from EQT X and EQT Infrastructure VIFundraisings are generally taking longer in the current fundraising environment, and we expect the fundraising market to meaningfully improve only once realizations pick up materially across private marketsEQT Infrastructure VI had fee-generating commitments of EUR 16.2bn. Active fundraising efforts are expected to materially conclude in 2024. The fund is expected to reach its target size upon final closeEQT Future1 closed at EUR 3bn in total fund commitments, with total fee-generating commitments to the strategy, which includes co-investments, totaling EUR 3.6bnBPEA EQT Mid Market Growth1 held its final close at more than double the fund’s target size, with USD 1.6bn in total fund commitments, of which USD 1.4bn is fee-generatingEQT launched EQT Healthcare Growth, a dedicated healthcare buyout fund, which has announced two investments to dateEQT Nexus’ NAV amounted to approximately EUR 700m, and EQRT, EQT’s semi-liquid strategy focusing on direct investments in commercial real estate, announced its first acquisition and initiated marketing in a slow real estate fundraising market

1.EQT Future and BPEA EQT Mid Market Growth charge management fees on invested capital

Investment and exit activity2

Total investments by the EQT funds during the period amounted to EUR ‌12‌bn (EUR ‌‌9‌bn) driven by strong deal flow across regions and strategiesInvestments include the partnership with EdgeConneX to develop hyperscale data centers in APAC; the public to private tender of OX2; fiber-to-the-home platform Lumos (EQT Infrastructure VI); the public to private tender of Believe, the largest independent digital-native music label globally; Avetta, a leading cloud-based supply chain risk management software platform (EQT X); and the public to private tender of Perficient, a leading global digital consultancy (BPEA VIII)Total gross fund exits announced during the period amounted to EUR ‌4‌bn (EUR ‌‌‌4‌bn)Exits include the sale of idealista, a leading real estate platform in Southern Europe (EQT IX), Ottobock, the global leader in wearable human bionics (EQT VII); fiber-to-the-home platform Lumos (EQT Infrastructure III); CMS Info Systems, India’s largest cash management company (BPEA VI); and Shinhan Financial Group, the largest financial group in Korea (BPEA VII)Galderma (EQT VIII), a leader in dermatology, priced its IPO on the SIX Swiss Exchange, and Waystar (EQT VIII), a cloud-based provider of software for simplifying healthcare payments, began trading on the Nasdaq stock exchange; both IPOs saw the company raise primary capital, while EQT VIII retained its ownership with the liquidity benefit of having publicly traded shares, paving the way for realizations over time

2.Signed transactions, if not otherwise mentioned

Investment performance

All key funds continued to perform On plan or Above planValue creation across the Key EQT funds amounted to 5% during the period, driven by earnings growthThe key funds in EQT Infrastructure, and more recent vintages across both Private Capital EU & North America and Private Capital Asia saw the strongest performanceIn certain earlier Private Capital vintages, which have a significant share of already realized investments, fund valuations were modestly lower due to specific pockets of underperformanceEQT’s Capital Markets team took advantage of strong financing markets to optimize portfolio company debt by further extending maturities, improving covenants, and reducing interest expenses. The EQT key fund portfolio companies have no material maturities before 2027

Balance sheet, realization of carried interest and liquidity

At 30 June 2024, interest bearing liabilities amounted to EUR ‌1,994‌m. Cash and cash equivalents amounted to EUR ‌‌806‌m. EQT’s EUR 1.5bn sustainability-linked revolving credit facility was undrawn and the facility was extended in July 2024 with a tenor of
5 years with two 1-year extension options. Net Debt (ND) amounted to EUR ‌1,194‌m. ND/Adjusted EBITDA was ‌‌‌0.9x‌ and ND/Adjusted Fee-related EBITDA ‌‌1.0x‌, both on a last twelve-month basis**Reported Carried Interest* amounted to EUR ‌‌164‌m (EUR ‌168‌m). Adjusted Carried Interest amounted to EUR ‌‌‌‌21‌m (EUR ‌‌‌72‌m). Realized (cash) carried interest amounted to EUR ‌‌‌19‌m (EUR ‌‌84‌m)As previously communicated, EQT expects to execute share buyback programs twice a year to offset the dilution impact from EQT’s equity incentive programs. EQT repurchased 2.2m shares during the period and a second buyback program will be carried out between 19 July 2024 and 23 August 2024 and comprises 2.0m shares

* As of January 1, 2024, EQT has, in accordance with IAS 8, changed accounting principles relating to carried interest, see Note 6. Adjusted Revenue is unchanged compared to prior periods
** Net debt end of period divided by Adjusted EBITDA during the last twelve months
Note: The adjusted metrics are alternative performance metrics for the EQT AB Group. For a full reconciliation, please refer to section ‘Alternative performance measures’

People and future-proofing

Richa Goswami joined the EQT AB Board, bringing experience and expert knowledge in building consumer facing financial brandsThe number of full-time equivalent employees and on-site consultants (FTE+) amounted to ‌1,861‌ (‌‌1,814‌), of which ‌1,796‌ (‌‌‌1,716‌) FTEsMasoud Homayoun, Partner and Head of EQT Value-Add Infrastructure, joined EQT’s Executive CommitteeSince committing to the Science Based Targets initiative in 2021, EQT has supported 44 portfolio companies in setting science-based targets, of which 12 completed the validation during the period. In terms of invested capital, this represents a portfolio coverage of 57% as of Q1 (surpassing EQT’s interim target of 40% in 2025). With a continuously evolving portfolio, a further 21 companies are in the process of setting targets

Other

EQT won six awards in the 2023 PEI Group Awards, including Infrastructure Investor’s ‘Global Sustainable Investor of the Year’ for the second consecutive year, and New Private Markets’ ‘Multi-Strategy Firm of the Year (ESG)’. EQT was also recognized in the 2024 Prequin League Tables as one of the ‘Most Consistent Top Performing Infrastructure Fund Managers’, and for the third year in a row, EQT was ranked in the top 3 in the PEI300 list3The acquisition of HDFC Credila (BPEA VII) was awarded the 2024 Private Equity Deal of the Year in the Mint India Investment Summit AwardsEQT established offices in Warsaw, Poland and Bengaluru, India. The Warsaw office is expected to become a significant tech development hub for EQT, host global operations functions, and other teams over time. The Bengaluru office will host junior investment advisory professionals, working alongside EQT’s global investment advisory teams

3.The PEI 300 measures the amount of private equity capital raised between 1 January 2019 and 31 December 2023

Events after the reporting period

BPEA VIII announced the public-to-private of Keywords Studios, a leader in gaming technology servicesEQT Future announced its investment in Flix, a global travel company focused on long-distance ground transportationIn addition to EQT’s current A- (Stable) rating from Fitch, EQT obtained an A- (Stable) rating from S&P, underscoring EQT’s operational strength and robust financial positionInvestment levels in EQT Key funds as of 18 July 2024, were 35-40% in EQT X, 40-45% in EQT Infrastructure VI and 65-70% in BPEA VIII

Presentation of EQT AB’s Half-year Report 2024

Financial analysts and media are invited to participate in a conference call, including a presentation at 08:30 CEST.

The presentation and a link to follow the webcast and conference call live can be found here and a recording will be available afterwards.

To participate by phone, please register here. You will then receive your personal dial-in details, to be able to ask questions during the Q&A.

Information on EQT AB’s financial reporting

The EQT AB Group has a long-term business model founded on a promise to its fund investors to invest capital, drive value creation and create consistent attractive returns over a 5 to 10-year horizon. The Group’s financial model is primarily affected by the size of its fee-generating assets under management, the performance of the EQT funds and its ability to recruit and retain top talent.

The Group operates in a market driven by long-term trends and thus believes quarterly financial statements are less relevant for investors. However, in order to provide the market with relevant and suitable information about the Group’s development, EQT publishes quarterly announcements with key operating numbers that are relevant for the business performance (taking Nasdaq’s guidance note for preparing interim management statements into consideration). In addition, a half-year report and a year-end report including financial statements and further information relevant for investors is published. Finally, EQT also publishes an annual report including sustainability reporting.

Contact
Olof Svensson, Head of Shareholder Relations, +46 72 989 09 15
EQT Shareholder Relations, shareholderrelations@eqtpartners.com

Rickard Buch, Head of Corporate Communications, +46 72 989 09 11
EQT Press Office, press@eqtpartners.com,  +46 8 506 55 334

This is information that EQT AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 07:00 CEST on 18 July 2024.

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A-LIGN Issues First ISO 42001 Certification to Synthesia

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TAMPA, Fla., Sept. 25, 2024 /PRNewswire/ — A-LIGN, the leading provider in cybersecurity compliance, has issued its first unaccredited ISO/IEC 42001 certification to Synthesia, marking a groundbreaking achievement in artificial intelligence (AI) compliance.

The issuance of Synthesia’s ISO 42001 certificate highlights A-LIGN’s unwavering commitment to excellence and its role in empowering clients to achieve and maintain the highest levels of compliance in the ever-evolving AI landscape.

“AI is revolutionizing our world, driving change in both business operations and regulatory frameworks,” said Patrick Sullivan, VP of Strategy & Innovation at A-LIGN. “At A-LIGN, we are dedicated to innovation through services like ISO 42001, ensuring our clients receive the trusted quality they expect as the AI landscape evolves. This commitment enables industry leaders like Synthesia to leverage compliance as a strategic advantage.”

London-based Synthesia is the first AI video company to achieve ISO 42001 compliance. This certification sets a new benchmark in the industry, showcasing Synthesia and A-LIGN’s joint dedication to compliance innovation and high-quality security.

“Synthesia is committed to the responsible, transparent, and secure development of AI technologies, and achieving ISO 42001 certification through A-LIGN’s audit process demonstrates our dedication to these principles,” said Martin Tschammer, Head of Security at Synthesia. “A-LIGN’s expertise and attention to detail helped us identify and remediate any gaps in our rigorous processes. Together, we have led the way for the rest of the industry in the adoption of this standard, fostering trust and ensuring the long-term success of AI development and use.”

For more information about A-LIGN and ISO 42001 certification services, visit https://www.a-lign.com.

About A-LIGN
A-LIGN is the leading provider of high-quality, efficient cybersecurity compliance programs. Combining experienced auditors and audit management technology, A-LIGN provides the widest breadth and depth of services including SOC 2, ISO 27001, HITRUST, FedRAMP, and PCI. A-LIGN is the number one issuer of SOC 2 and a leading HITRUST and FedRAMP assessor. To learn more, visit a-lign.com.

About Synthesia
Synthesia is the world’s leading enterprise AI video communications platform. More than 55,000 businesses, including half of the Fortune 100, use it to communicate efficiently and share knowledge at scale using AI avatars. Founded in 2017, Synthesia is headquartered in London and makes video creation, collaboration and sharing easy for everyone. Learn more at https://synthesia.io/.

Media Contact: Abigail Rodrigues, abigail.rodrigues@a-lign.com

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Vanderbilt University School of Medicine Basic Sciences Adds Carterra’s LSAXT Instrument to Speed Drug and Vaccine Research and Advance Patient Care

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The Center for Structural Biology in the School of Medicine Basic Sciences will be a hub of research innovation using Carterra’s platform in traditional and AI-driven workflows for characterizing both antibodies and other biomolecules

SALT LAKE CITY and NASHVILLE, Tenn. , Sept. 25, 2024 /PRNewswire/ — Carterra® Inc., the world leader in innovative technologies enabling high-throughput biology, and the Vanderbilt University School of Medicine Basic Sciences announced today the addition of the Carterra LSAXT label-free interaction analysis platform to the Center for Structural Biology (CSB). Vanderbilt and Vanderbilt University Medical Center researchers will be able to discover and characterize large molecules including antibodies.

“Many of our researchers are trying to identify antibodies that bind to a protein involved in health or disease,” said Borden Lacy, director of the CSB and Edward and Nancy Fody Chair in Pathology and professor of biochemistry and pathology, microbiology and immunology. “The ability to rapidly screen and quantify binding for large libraries of antibodies will shape the way molecular discovery moves forward at Vanderbilt. The work we spend months on will now be completed in a matter of days. It is incredibly exciting.” 

Carterra’s LSA platform was used by pharmaceutical giant Eli Lilly during the COVID-19 pandemic to find antibodies effective against SARS-CoV-2. Within 90 days of isolating antibodies from an early COVID-19 survivor, Lilly was in clinical trials with the world’s first COVID-19 therapeutic, the antibody Bamlanivimab.

BAM, as it became known, is the fastest drug ever discovered and saved countless lives.  The publication in Science describing the feat concluded, “The resulting speed at which this drug discovery and development effort progressed…is a testament to the advanced discovery and characterization platforms.”

Vanderbilt investigators will now be able to leverage the Carterra platform for a variety of research aims. 

Two projects that are getting early traction include:

Stephanie Wankwicz, assistant professor of molecular physiology and biophysics and a faculty affiliate of the Center for Applied AI in Protein Dynamics, is elucidating the role of entropy in substrate specificity and catalysis.  Wankowicz is planning to use Carterra’s platform to more quickly and efficiently analyze a large panel of peptide sequence variants against a kinase. Older methods are very low throughput and would require high concentrations of the protein/peptide solution.

Brian Wadzinski, associate professor of pharmacology, recently submitted a grant application to characterize pan- and phosphor-specific nanobodies for investigating MAPK and PP2A signalling. Affinity measurements for these large panels of nanobodies and high-resolution epitope binning can only be performed on Carterra’s platform.

The LSAXT instrument includes hardware and software features that build upon the capabilities of Carterra’s original and highly successful LSA instrument while maintaining its impressive throughput and sample efficiency. The LSA platform delivers 100 times the data in 10 percent of the time-to-answer and uses only 1 percent of the sample required by other label-free platforms.

Just last year, Vanderbilt launched the Center for Applied AI in Protein Dynamics which will also benefit from the addition of Carterra’s platform.  The LSA® is the only label-free biosensor that can generate enough data, quickly and efficiently, to train algorithms and learning models used to predict the affinity and epitope coverage of drug candidates. Pharmaceutical and biotech companies who have now moved to AI-driven drug discovery workflows have standardized on the LSA.

Vanderbilt has always led its peers in research innovation,” commented Tim Germann, Chief Commercial Officer at Carterra. “To enable the use of AI in antibody discovery and characterization by adding the LSAXT to its stable of technologies cements Vanderbilt’s position as the academic leader in this rapidly evolving research landscape.”

Since its launch in 2018, Carterra’s interaction analysis platform has penetrated 19 of the largest 20 pharmaceutical companies, major universities and vaccine makers, contract research organizations (CROs), and biotechs on four continents. Characterizing binding kinetics and epitope coverage of large numbers of antibodies in early research has been transformative. The LSA platform has been profiled in multiple Science, Nature, and Cell peer-reviewed papers.

Media Contact:
Cheri Salazar, Sr. Marketing Manager
Carterra, Inc.
(408) 594-9400
Csalazar@carterra-bio.com 

About Carterra, Inc.
Carterra® is privately held and is the leading provider of high-throughput technologies designed to accelerate and improve the discovery of novel therapeutic candidates. Carterra’s LSA® instrument, software, and consumables for biotherapeutic discovery and characterization deliver up to 100 times the throughput of existing platforms in 10% of the time while using only 1% of the sample required by other systems. The LSA combines patented microfluidics technology with real-time high-throughput Surface Plasmon Resonance (HT-SPR) and industry-leading data analysis and visualization software to revolutionize mAb screening. The new LSAXT provides enhanced optics to enable additional applications in biotherapeutic discovery and characterization. Carterra, Inc. is based in Salt Lake City, Utah, and has Customer Experience Centers in San Francisco, Salt Lake City, Boston, Manchester, England, and Munich, Germany. Carterra products are available in Asia-Pacific and Oceania through our exclusive distributor, Revvity. For additional information, please visit www.carterra-bio.com.

About the Vanderbilt Center for Structural Biology
The Vanderbilt Center for Structural Biology promotes the broad use of structural biology approaches in all life science research and provides resources for education and training in state-of-the-art technologies. Uniquely, the CSB merges applications of high resolution structural biology disciplines, X-ray crystallography, NMR spectroscopy, cryo-electron microscopy and computational biology, with the biophysical instrumentation needed to characterize biomolecular interactions. This strategy allows researchers to solve fundamental structural problems in medicine and biology. The CSB facilitates collaborations with investigators across a range of Departments in both the College of Arts and Science, the School of Medicine Basic Sciences, and the School of Medicine in Vanderbilt University Medical Center. The CSB is directed by Borden Lacy, Edward and Nancy Fody Chair in Pathology and professor of biochemistry and pathology, microbiology and immunology.

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BMC Helping Customers Improve Lives and Customer Experiences in Healthcare, Financial Services and Energy Sectors

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NHS Northumbria patients, Nationwide Building Society members, and EDP customers benefit from the time- and cost-savings BMC delivers using data-driven insights and automation

HOUSTON, Sept. 25, 2024 /PRNewswire/ — BMC, a global leader in software solutions enabling business faster than humanly possible, has collaborated with European leaders in the healthcare, finance, and energy industries to optimize their IT and operational technology (OT) investments and realize the benefits of DataOps and ServiceOps for millions of their patients and customers.

NHS Northumbria, Nationwide Building Society, and Energias de Portugal (EDP) use the Control-M solution from BMC and the BMC Helix platform to gain data-driven insights instantly across complex hybrid IT environments, saving costs while drastically improving the speed and reliability at which they deliver value.

NHS Northumbria accelerates patient care with BMC Helix

Northumbria NHS Foundation Trust is among the largest healthcare organizations geographically in the U.K., with around 12,000 employees serving around 500,000 people in northeast England. Delivering a full range of health services across 10 main sites, including an emergency care hospital, general and community hospitals, and other facilities, the Trust seeks to improve patient outcomes and relieve pressure on its people and processes.

Using BMC Helix to digitize its end-user experience, NHS Northumbria has achieved:

90% paperless SLA improvement400% increase in Digital Workplace platform adoptionSignificant ROI within the first three yearsImproved patient processing times, real-time decisions, and secure authorizations from any device

“To achieve big things, you must develop the ability to get small things right, too. In our team, we ensure that excellence in everything is not an exception. It’s more of an attitude, and BMC shares those values,” said Glen Foster, Deputy Director for Service Delivery, Performance and Governance, Northumbria Healthcare NHS Foundation Trust. “We’ve already improved care levels—now we aim to build out trust rating beyond outstanding and see what digital transformation can deliver.”

Nationwide Building Society meets high financial standards with BMC Helix Capacity Optimization

Based in the U.K., Nationwide is the world’s largest building society, with 16 million members. Nationwide decided to upgrade from its custom on-premises system to a cloud solution that could handle the organization’s complex IT estate, and selected the BMC Helix Capacity Optimization solution, which delivers robust forecasting, modeling, and extrapolation functionalities that made it stand out.

With the BMC Helix Capacity Optimization solution, Nationwide has:

Met regulatory requirements 6 months ahead of scheduleEnabled three months advanced notice for potential capacity issuesReduced requests forwarded to ITOps by 94%

“If we want to stand by the decisions we’re making, we’ve got to trust the data. Now, the data is in BMC Helix Capacity Optimization, so the system can consolidate and highlight what’s pertinent. Getting to this point was critical,” said Peter Norris, Process Owner for IT Service Demand and Capacity Management at Nationwide.

EDP powers the energy market with Control-M

As a global company, EDP relies on a wide range of business services to drive innovation and provide support to customers worldwide, including energy production, distribution, and management. To simplify, automate, and standardize the production of millions of invoices per day and ensure that accurate invoices were created, printed, and shipped on time, every time, EDP chose Control-M, the market-leading application and data workflow orchestration platform from BMC.

With this solution, EDP has:

Serviced nine million customersExperienced a 46% reduction in application workflow execution incidentsReduced requests forwarded to ITOps by 36%

“Control-M runs hundreds of applications and covers nearly all of our business in EDP. If anyone from the Application Teams or Process Architecture Teams comes to us with an integration request or other challenge, Control-M can always offer a solution,” said Carlos Miguel Pereira, Head of Scheduling Platform and Operations Management at EDP.

Additional resources

Learn more about BMC customers here

About BMC

BMC empowers 86% of the Forbes Global 50 to accelerate business value faster than humanly possible. Our industry-leading portfolio unlocks human and machine potential to drive business growth, innovation, and sustainable success. BMC does this in a simple and optimized way by connecting people, systems, and data that power the world’s largest organizations so they can seize a competitive advantage.

BMC, BMC Software, the BMC logo, and other BMC marks are the exclusive properties of BMC Software, Inc. and are registered or may be registered with the U.S. Patent and Trademark Office or in other countries. 

©Copyright 2024 BMC Software, Inc.
www.bmc.com

Editorial Contact
Madeline Bien
BMC
ExtComms@bmc.com

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