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Gentner Sells RFM to Burk

Gentner Sells RFM to Burk

Gentner Communications Corp. (Nasdaq: GTNR) has sold its Remote Facilities Management business to Burk Technology.
Both companies claim the sale makes Burk the leading provider of facility control systems to stations.
“Burk and Gentner products are well differentiated, offering a wide range of choice for group owners and call-letter broadcasters, said Burk President Peter Burk. “With the addition of the Gentner line, we will be able to expand our development efforts, bringing technological advancements to market faster.
Gentner will continue to supply telephone interface equipment to the broadcast market.
Under the agreement, Burk will pay Gentner $3.2 million, including $750,000 at closing, $1.75 million in the form of a secured, subordinate promissory note, and a $700,000 commission earned on incremental growth of the RFM product line. Thereafter, existing Gentner RFM customers will receive continued technical support from Burk.
The sale enables Gentner to focus on growing its core conferencing business.
“While RFM is the heart of Burk’s business, it has become less of a focus than conferencing at Gentner and has not been the beneficiary of resources necessary to achieve growth in line with corporate objectives. As a result, RFM revenue has been flat for the past seven quarters,” said Gentner President/CEO Fran Flood.
For the first six months of fiscal 2001, RFM sales accounted for 8 percent
of total revenue, or $1.7 million, stated Flood.