Electronics For Imaging, Inc. (EFI) announced that it closed its previously announced sale of a portion of its real estate in Foster City, CA, to Gilead Sciences, Inc..
Pursuant to this transaction the company sold certain real property to Gilead for a total purchase price of $137.5 million, subject to an escrow holdback of approximately 11%. The property sold included approximately thirty acres of land, which is entitled for development, the office building located at 301 Velocity Way consisting of approximately 163,000 square feet, and certain other assets related to the property.
The company retains ownership of the remaining land and the office building located at 303 Velocity Way consisting of approximately 295,000 square feet on approximately five acres of land, which is the company's current headquarters.
The company currently anticipates using a portion of the after tax proceeds to fund a share repurchase program, subject to approval by the Board of Directors.
“We are very pleased to deliver on our commitment to monetize our real estate assets which was a key objective in our plan to restore shareholder value,” said Guy Gecht, CEO of EFI. “The current business environment heightens the necessity to most effectively utilize our assets and this transaction allows us to monetize this previously undervalued asset.”