Business Context and Reporting Period
Company: NetApp, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: September 8, 2017
Event: Entry into a Material Definitive Agreement for the sale of corporate real estate.
Key Financial Metrics
This filing reports a specific transaction rather than periodic financial performance. Key transaction metrics include:
- Total Purchase Price: $318.7 million
- Payment Structure:
- First Closing: $223.1 million
- Second Closing: $95.6 million
- Assets Sold: Three buildings (approx. 380,966 sq. ft. total) and unimproved land in Sunnyvale, California.
Material Changes and Transaction Details
On September 8, 2017, NetApp entered into a Purchase Agreement with Google Inc. to sell its principal executive office properties. The agreement includes a leaseback provision where NetApp will lease one of the buildings from Google for a limited term. The transaction is subject to due diligence, termination rights, and customary closing conditions, including local governmental approval for the subdivision of a common lot for the second closing.
Expected Closing Dates:
- First Closing: No later than January 21, 2018
- Second Closing: No later than October 31, 2018
Guidance, Outlook, and Risks
The filing does not provide updated financial guidance, management commentary on future earnings, or specific risk factors beyond the standard closing conditions inherent to the real estate transaction. The date of each closing may be extended under certain circumstances as set forth in the Purchase Agreement.
Investor Verification Checklist
- Verify the final closing dates for both the first and second tranches of the sale.
- Confirm the specific terms and duration of the leaseback agreement for the retained building.
- Monitor the receipt of local governmental approval required for the second closing.
- Review the full Purchase Agreement when filed as an exhibit to the next periodic report for detailed covenants.