Teledyne Technologies Inc. (NYSE:TDY) said Monday it agreed to acquire Varex Imaging Corp. (NASDAQ:VREX) in an all-cash transaction valued at about $1.1 billion, expanding its presence in medical and industrial X-ray imaging.
Varex shares surged over 48% following the announcement, while Teledyne shares edged higher.
Under the agreement, Teledyne will pay $18.90 per Varex share in cash. The transaction value includes Varex’s equity awards and net debt as of April 3.
Teledyne held cash and cash equivalents of $340.1 million as of June 28, 2026.
Teledyne Expands X-Ray Imaging Portfolio
Varex develops X-ray sources, digital X-ray detectors, high-voltage interconnects and imaging software for original equipment manufacturers.
Its products include X-ray tubes, flat-panel and photon-counting detectors, and control accessories used in medical diagnostic imaging, nondestructive inspection, security and vehicle inspection, and measurement applications.
Teledyne Executive Chairman Robert Mehrabian said the companies serve similar customers but have complementary product portfolios with minimal overlap.
Teledyne entered the health care market through its 2011 acquisition of Teledyne DALSA and expanded its presence with the acquisition of Teledyne e2v in 2017.
Mehrabian said Varex adds capabilities Teledyne currently lacks, including detectors designed for high-radiation environments such as oncology, advanced photon-counting detectors and X-ray tubes used in radiography, fluoroscopy and computed tomography.
Varex President and CEO Sunny Sanyal said joining Teledyne would provide additional resources to accelerate adoption of Varex’s imaging technology and develop its next generation of products.
Varex Earnings Show Profit Growth
The acquisition follows Varex’s latest quarterly results, which showed stronger earnings despite a slight revenue miss.
Varex reported quarterly earnings of 31 cents per share, beating the analyst consensus estimate of 21 cents. Earnings increased from 18 cents per share a year earlier.
Quarterly sales rose 3.7% year over year to $210.5 million, but fell short of the analyst consensus estimate of $213.94 million.
Deal Expected To Close In Early 2027
The boards of both companies unanimously approved the transaction.
The acquisition is expected to close in early 2027, subject to customary closing conditions, including regulatory approvals and approval from Varex stockholders.
Evercore is serving as Varex’s exclusive financial adviser, while Orrick, Herrington & Sutcliffe LLP is serving as its legal counsel.
Latham & Watkins LLP and McGuireWoods LLP are serving as legal counsel to Teledyne.
Price Action
Price Action: Varex Imaging shares were up 48.43% at $18.42 and Teledyne Technologies shares were up 0.47% at $694.55 at the time of publication on Monday, according to Benzinga Pro data.
Photo via Shutterstock
Login to comment