Teledyne to Buy Varex Imaging in $1.1 Billion All-Cash Deal
The transaction would add complementary X-ray technologies to Teledyne’s portfolio and support faster development of advanced imaging products.
Teledyne Technologies Incorporated (TDYNE) agreed to acquire Varex Imaging Corporation (VREX) for approximately $1.1 billion in an all-cash transaction that would expand Teledyne’s position in medical and industrial imaging technology.
Under the agreement, Varex stockholders would receive $18.90 a share in cash. The companies anticipated completing the transaction in early 2027, subject to customary closing conditions, including regulatory clearances and approval by Varex stockholders. The announcement didn’t disclose a premium or identify expected cost savings from the combination.
Teledyne said Varex’s X-ray technologies fit naturally alongside its existing product portfolio. The acquirer’s resources would help accelerate adoption of Varex’s advanced imaging solutions and support development of the next generation of products, giving the combined operation a broader platform for serving customers that use related technologies across medical and industrial applications.
“Nevertheless, while Teledyne and Varex serve similar customers with related technologies, our products are uniquely complementary with minimal overlap,” Teledyne Executive Chairman Robert Mehrabian said.
Varex entered the transaction with businesses spanning medical imaging and industrial inspection. The company generated $211 million of revenue in its fiscal third quarter, including $134 million from Medical and $77 million from Industrial, as demand expanded in cargo and vehicle inspection systems. Revenue rose 4% from a year earlier, while operating cash flow totaled $21 million. Those operations give Teledyne exposure to X-ray components and systems used in healthcare, security and industrial settings, matching the customer and technology overlap outlined by management.
The acquisition also followed Teledyne’s earlier combinations with DALSA and e2v, transactions that added digital-imaging and sensor capabilities to its portfolio. Varex extends that acquisition pattern into a complementary X-ray platform and gives Teledyne additional technology and product-development resources in imaging markets.
The companies must now secure Varex stockholder approval and the required regulatory clearances before the planned early-2027 closing. Until those conditions are met, Varex will continue operating as a standalone company; completion would place its medical and industrial X-ray operations inside Teledyne’s broader imaging portfolio.