Teledyne Technologies to Acquire X-Ray Imaging Specialist Varex for $1.1 Billion
The all-cash transaction at $18.90 per share positions the aerospace and defense electronics firm to expand its healthcare imaging capabilities with complementary X-ray technology.
Acquisition Expands Healthcare Portfolio
Teledyne Technologies Incorporated announced it has entered into a definitive agreement to acquire Varex Imaging Corporation for $18.90 per share in cash, representing an aggregate transaction value of approximately $1.1 billion including Varex's equity awards and net debt as of April 3, 2026 (8-K filing, 2026-08-10). The transaction, which received unanimous approval from both boards of directors, is expected to close in early 2027 subject to regulatory approvals and Varex stockholder approval.
Varex, headquartered in Salt Lake City with approximately 2,400 employees, specializes in X-ray imaging components including X-ray tubes, digital detectors, and image processing solutions used in medical diagnostics, industrial inspection, and security applications (8-K filing, 2026-08-10).
Strategic Rationale Centers on Complementary Technologies
Robert Mehrabian, Executive Chairman of Teledyne, emphasized the complementary nature of the combination despite both companies serving similar customer bases. "While Teledyne and Varex serve similar customers with related technologies, our products are uniquely complementary with minimal overlap," Mehrabian stated, noting that while Teledyne produces X-ray detectors, it does not provide detectors for high-radiation environments like oncology—an area where Varex operates (8-K filing, 2026-08-10).
The acquisition adds capabilities Teledyne has not developed internally. Varex provides advanced photon counting detectors for healthcare and industrial inspection, and manufactures X-ray tubes for radiography, fluoroscopy, and computed tomography applications—products Teledyne does not currently offer despite producing various vacuum electronics including magnetrons (8-K filing, 2026-08-10).
Teledyne initially entered the healthcare market through its 2011 acquisition of Teledyne DALSA, which was developing CMOS-based X-ray detectors, and expanded with the 2017 acquisition of Teledyne e2v, a supplier of magnetrons to cancer radiotherapy OEMs (8-K filing, 2026-08-10).
Transaction Provides Premium to Varex Shareholders
Sunny Sanyal, President and CEO of Varex, characterized the transaction as "an exciting new chapter" that "provides a substantial premium for our shareholders and exciting opportunities for our customers and employees across the medical and industrial markets we serve" (8-K filing, 2026-08-10). Sanyal noted that Teledyne's resources would help accelerate adoption of Varex's advanced imaging solutions and development of next-generation products.
Deal Structure and Advisors
The all-cash structure provides certainty to Varex shareholders at $18.90 per share. Evercore is serving as exclusive financial advisor to Varex, with Orrick, Herrington & Sutcliffe LLP providing legal counsel. Teledyne is represented by Latham & Watkins LLP and McGuireWoods LLP (8-K filing, 2026-08-10).
Varex will file a proxy statement with the Securities and Exchange Commission for a special stockholder meeting to vote on the merger agreement. The transaction remains subject to customary closing conditions including regulatory approvals (8-K filing, 2026-08-10).
With a market capitalization of approximately $32 billion, the roughly $1.1 billion acquisition represents a modest addition to Teledyne's portfolio as it continues expanding its digital imaging and instrumentation capabilities across healthcare and industrial markets.
This article was generated by MarginX from the 8-K filing on 2026-08-10. It is not investment advice.