Google has reportedly purchased a 100,693-square-foot manufacturing building at 3850 Fabian Way in Palo Alto's Adobe Meadow neighborhood from satellite maker SSL, formerly Space Systems/Loral LLC.
SSL's parent company Maxar Technologies announced on Friday that it had closed a deal for the 4.5-acre site that sits across the street from the main SSL campus for $70 million on Dec. 6, according to media reports. A Google spokeswoman confirmed the deal to local media, but would not comment on what Google plans to do with the site.
The area that Google purchased includes Building 1, where approximately 400 SSL engineers currently work on the design and production of satellites.
According to Maxar, these employees, along with customer workspaces in the building, will be relocated to nearby Building 21.
Biggs Porter, chief financial officer of Maxar Technologies, said the company still owns roughly 24 acres of office, research-and-development and manufacturing facilities in Palo Alto.
"With the sale of Building 1, we have reduced the SSL footprint in Palo Alto for improved efficiency and have freed up capital," Porter said in a statement. "The net proceeds from this transaction will be used to pay down Maxar debt. "
In November, Maxar CEO Howard Lance announced that the company planned to reduce its capital expenditures and focus on curbing its $3 billion debt load, according to SpaceNews.
Lance said unloading SSL's geostationary satellite manufacturing business would "help Maxar de-lever regardless of how that plays out â€” be it through a sale of SSL or of the 29 acres of real estate it sits on in Silicon Valley," according to the SpaceNews article. In June, SSL made 109 permanent layoffs in Palo Alto, according to a filing with the California Employment Development Department.