CENX appoints new CEO, reveals financial backers

Carrier Ethernet exchange operator CENX has appointed its second CEO in just over six months—an industry veteran with a strong track record in taking companies public. Joining the company as its new CEO is Herb Hribar, who previously served as COO for four companies that went public or were acquired during his tenure—including Verio, Eircom, Cablecom and Kabel Deutschland. Before his string of COO positions, Hribar was president of Ameritech Wireless.

Timed to coincide with CENX’s revelation, for the first time, of its financial backers, Hribar’s appointment suggests the company could be positioning itself for an initial public offering or acquisition. CENX financial backers include DCM, whose co-founder is Dixon Doll; Highland Capital Partners, where Sean Dalton is a general partner; and Mesirow Financial, whose senior managing director is Tom Galuhn. All three firms have strong credentials in the telecom industry

CENX founder and president Nan Chen was non-committal when Connected Planet asked him this morning about a potential IPO, however. “There is a really big plan for us,” he said. “There is an opportunity for CENX to be the dominant player in this particular space.”

Depending on how the carrier Ethernet exchange market continues to develop, CENX might need to raise additional funding, Chen said. “If we want to grow faster or quicker, we may need a cash infusion,” said Chen.

Back office systems are CENX’s secret sauce

Hribar told Connected Planet he has three main goals for CENX—and none of those referenced an IPO or acquisition. Hribar said he wants to deliver value to customers and make the business more successful, to achieve profitable growth by changing the way carrier Ethernet services are bought and to help ensure an environment where CENX’s great people can develop to their full potential.

Asked how CENX will differentiate itself from a growing range of competitors, Hribar said the company’s back office systems are critical. The Holy Grail in the carrier Ethernet exchange business is for carriers to be able to interconnect with one another in a highly automated manner—and Hribar said, “To a large extent we’ve made it there with our marketplace.”

He said CENX continues to make enhancements to its back office interconnection system but that the company is ahead of competitors on that front. “We still have some way to go but it’s a key differentiator,” Hribar said.

Hribar replaces Sandy Brown, another telecom industry veteran who joined CENX just over six months ago but recently resigned.