Google to Buy Eight Silicon Valley Office Buildings from NetApp for $250M
SUNNYVALE, CALIF. — Google Inc. (NASDAQ: GOOG) has entered into a purchase agreement to buy eight office buildings in Silicon Valley from NetApp (NASDAQ: NTAP) for $250 million, according to a document filed with the Securities and Exchange Commission on March 9. The tech companies amended the filing on March 11.
NetApp plans to lease back an unspecified portion of the office footprint from Google, according to the filing. The office properties, located in Sunnyvale in Santa Clara County, include the following:
• 1299 Orleans Drive (46,170 square feet)
• 1277 Orleans Drive (42,624 square feet)
• 1260 Crossman Ave. (95,464 square feet)
• 1240 Crossman Ave. (125,648 square feet)
• 549 Baltic Way (110,160 square feet)
• 641 Baltic Way (88,320 square feet)
• 611 Baltic Way (43,372 square feet)
• 633 Caribbean Drive (43,372 square feet)
According to the filing, the sale is expected to close prior to April 12, 2016, and in no circumstance later than April 22.
NetApp, a data storage management provider and servicer, recently announced it would cut roughly 12 percent of its workforce, according to the Silicon Valley Business Journal. NetApp currently has more than 12,000 employees in more than 150 offices worldwide.
The Sunnyvale-based company had about $6.1 billion in revenue in fiscal year 2015 ending on April 24, 2015, a 3 percent drop from fiscal year 2014.
NetApp’s stock price closed on Wednesday, March 16 at $26.29 per share, down from $36.78 per share at this time last year.
Google’s stock price closed on March 16 at $737.82 per share, up from $550.82 per share at this time last year. Google is publicly traded under the Alphabet Inc. umbrella.
Alphabet Inc., a multinational conglomerate created in 2015, is the parent company of Google and other companies previously owned by Google. Based in Mountain View, Calif., Alphabet Inc.’s 2015 revenue was just shy of $75 billion.
— John Nelson