Teledyne to Buy Varex Imaging in $1.1 Billion Cash Deal

The Tip Desk · October 21, 2026 · 2 min read

The aerospace and defense electronics maker will fold the X-ray imaging company into its Digital Imaging segment after stockholder and regulatory approvals.

Teledyne Technologies Incorporated (TDY) agreed to acquire Varex Imaging Corporation (VREX) for approximately $1.1 billion in cash, a transaction the aerospace and defense electronics company said it expects to close in early 2027.

The deal remains subject to customary closing conditions, including regulatory approvals and a vote by Varex’s stockholders. After close, Varex will be included within Teledyne’s Digital Imaging segment.

Varex is a Salt Lake City-based designer and manufacturer of X-ray tubes, digital detectors, and other image-processing solutions used in medical, industrial, and security imaging. The company employs about 2,500 people in North America, Europe, and Asia.

In the third quarter of fiscal 2026, Varex reported revenues of $211 million, up 4% from a year earlier. Medical revenue was $134 million and Industrial revenue was $77 million. Non-GAAP gross margin rose to 37% from 34% in the year-ago quarter, and non-GAAP earnings were $0.31 a share versus $0.13 a year earlier. Chief Executive Officer Sunny Sanyal said third-quarter product sales before an IEEPA-related customer reimbursement adjustment were approximately $217 million, citing growth in Industrial and expansion in cargo and vehicle inspection systems.

The quarter also included $17 million of refunds from U.S. Customs on previously paid IEEPA tariffs and a $7 million revenue reduction for expected customer reimbursements, together lifting third-quarter gross profit by about $10 million. Operating cash flow was $21 million. Cash, cash equivalents, and marketable securities were $99 million at quarter-end.

Varex cancelled its third-quarter earnings call and withheld financial guidance in light of the pending Teledyne transaction.

Teledyne has been an active acquirer. In the fourth quarter of 2025 it completed a carve-out purchase of TransponderTech and spent about $850 million on acquisitions for the full year. It acquired DD-Scientific on January 14, 2026. Second-quarter 2026 net sales were $1.66 billion, and the company raised its full-year 2026 non-GAAP earnings outlook to $24.45 to $24.65 a share.

“We were pleased to announce the pending highly-complementary Varex acquisition in August, and Varex’s special meeting is scheduled for October 28,” Teledyne said.