Teledyne to buy Varex Imaging in $1.1 billion deal

Teledyne Technologies agreed to buy Varex Imaging for $18.90 a share in cash, valuing the X-ray imaging components maker at about $1.1 billion including equity awards and net debt. Varex shares jumped nearly 50% before the bell after the agreement, which was expected to close in early 2027.

The deal brought together two businesses already active in imaging-heavy markets. Teledyne said the purchase would expand its healthcare and industrial imaging portfolio and complement its digital imaging and electronics businesses, while Varex makes the components used in X-ray systems for medical scanners and industrial inspection equipment. Teledyne Chief Executive Robert Mehrabian said the companies serve similar customers with related technologies.

The price also marked a sharp premium for Varex shareholders. The $18.90 cash offer was 88% above where the stock traded in late May, when shares were near $10 and the company’s market capitalization was about $424 million. That gap suggests Teledyne was willing to pay for a specialized business that fits into a larger platform serving customers that depend on reliable imaging hardware and long product cycles.

Varex describes itself as a leading innovator, developer and manufacturer of X-ray imaging component solutions worldwide, a footprint that reaches both healthcare equipment and security systems. That matters because imaging technology sits at the intersection of industrial inspection and medical diagnostics, where supply chains are narrow and performance requirements are strict. A combined Teledyne-Varex platform could deepen the company’s reach with hospitals, device makers and industrial buyers, while also drawing close attention from competitors and regulators watching a concentrated market.

The announcement came from Thousand Oaks, California, and Salt Lake City, Utah, underscoring how much value remains in the hardware behind advanced imaging systems. For Teledyne, the transaction added a focused imaging business to a broader sensing and electronics portfolio; for Varex, it delivered a cash exit at a steep premium and a place inside a larger industrial technology group.