Technology company Amdocs Ltd. (Nasdaq: DOX) is buying the land in Ra'anana on which Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) had planned to build its headquarters. The price is believed to be around NIS 200 million. "Globes" first reported the potential deal in May.
Amdocs, managed by CEO Eli Gelman, announced yesterday that it had signed an agreement to buy commercial land in a central location in Ra'anana. Completion of the deal is subject to the closure conditions, and to a third party waiving its rights to the land.
Amdocs expects to use the land for a new campus that will supply an optimal advanced environment fulfilling the needs of Amdocs Israel and its employees, and that will support the company's future growth.
Amdocs is now considering various options for development and construction of the new campus, including either ownership or a long-term lease. The company also announced that the cost of the purchase would probably have no substantial effect on its cash balance or operating results.
Amdocs recently extended its lease in its current building, which it is renting from REIT 1 Ltd. (TASE:RIT1) and partners. This lease, however, includes an escape clause. Following a "Globes" probe, the building permit granted to Amot Investments Ltd. (TASE:AMOT), which participated in a tender for building Amdocs's headquarter in Kfar Saba, was canceled.
Teva is selling the lot two years after buying it. The sale is part of the company's effort to sell assets and cut expenses in order to service its $35 billion debt.
Teva said in response, "Teva confirms that it has decided to sell the land it owns in Ra'anana. Teva is concentrating on finding an optimal solution for establishing the company's global headquarters in Petah Tikva that will streamline its work and save on the cost of building it. Teva is committed to creating a comfortable and advanced work environment consistent with its corporate culture and the values guiding the company."
Published by Globes [online], Israel Business News - www.globes-online.com - on September 14, 2017
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