Brocade Taps Carney as CEO After Earlier Search for BuyerJordan Robertson
Brocade Communications Systems Inc. named Lloyd Carney as chief executive officer, adding an executive with experience selling companies in a possible prelude to a search for a buyer.
Carney, 50, was most recently the CEO of Xsigo Systems Inc., a company specializing in data center virtualization that was bought by Oracle Corp. last year. Previously, he was CEO of Micromuse Inc., which made network-management software and was sold to IBM Corp. in 2006. Carney’s appointment is effective immediately, Brocade said in a statement yesterday.
Brocade said last August that Michael Klayko, CEO since 2005, would resign. The San Jose, California-based company had been seeking a buyer, and Klayko’s resignation was seen as a step by the board to expedite a sale of the company.
“Carney’s two previous companies were eventually acquired,” Brian Marshall, an analyst at ISI Group, wrote in a research note.
Brocade’s board probably took Carney’s experience “into consideration,” Marshall said, adding that finding a buyer would be difficult given the “competitive challenges” Brocade faces.
Brocade’s strong cash flow and prominent position in switches for data-storage networks have made it an attractive takeover candidate. Brocade has worked with Frank Quattrone’s Qatalyst Partners to help auction the company, though efforts so far have been unsuccessful, people with knowledge of the matter have said.
“I believe Brocade is poised to leverage its heritage of strong innovation and significantly disrupt the status quo in the data-networking industry,” Carney said in the statement.