Summary
Gilead Sciences, Inc. (GILD) announced on July 18, 2012, a material definitive agreement to acquire real property and related assets from Electronics For Imaging, Inc. (EFI) for $180 million. The acquisition includes a significant office building located at 303 Velocity Way in Foster City, California, along with associated real property and other assets. This strategic move suggests an investment in expanding Gilead's physical infrastructure, potentially to support its growing operations or consolidate facilities. The agreement outlines a structured purchase process, including an initial escrow deposit of $5.0 million and a comprehensive due diligence period of up to 90 days, with provisions for extension. Gilead retains significant flexibility to terminate the agreement during the due diligence phase. The closing is contingent on satisfying specific conditions and is expected to occur by January 14, 2013. Gilead will also lease back a portion of the building to EFI temporarily post-closing to ensure a smooth transition.
Key Highlights
- 1Gilead Sciences entered into a $180 million agreement to acquire real property and assets from Electronics For Imaging, Inc.
- 2The acquired property includes a significant office building at 303 Velocity Way, Foster City, California.
- 3The transaction is structured with an initial $5.0 million escrow deposit.
- 4A due diligence period of up to 90 days (with potential extension) allows Gilead to review the property and related matters.
- 5Gilead has the right to terminate the agreement at its sole discretion during the due diligence period.
- 6The closing is subject to customary closing conditions and is expected to occur by January 14, 2013.
- 7Gilead will lease back a portion of the acquired building to EFI for a limited term post-closing.