Teledyne Agrees to Buy X-Ray Component Maker Varex Imaging for About $1.1 Billion

Teledyne Technologies has agreed to acquire Varex Imaging, a Salt Lake City maker of X-ray tubes and digital detectors, for $18.90 per Varex share in cash, the two companies said in a joint announcement on August 10. They put the aggregate value of the transaction at approximately $1.1 billion, taking into account Varex's equity awards and its net debt as of April 3, 2026.

The boards of both companies unanimously approved the agreement, according to the joint release, which Varex filed with the Securities and Exchange Commission. The deal still needs regulatory approvals and the approval of Varex stockholders, and the companies said they expect to complete it in early 2027.

What Varex makes

Varex designs and manufactures X-ray imaging components, including X-ray tubes, flat panel and photon counting detectors, high-voltage interconnects and imaging software, which it sells to equipment manufacturers. The release says its products are used in medical diagnostic imaging and also in non-destructive inspection, security and vehicle inspection, and analysis and measurement. The company employs about 2,400 people in North America, Europe and Asia.

The medical side is the larger business. Over the first nine months of its fiscal year, Varex reported net medical revenues of $435 million, down 1% from the year-earlier period, while its industrial unit had sales of $201.1 million and is growing faster, MedTech Dive reported.

Why Teledyne wants it

Teledyne, based in Thousand Oaks, California, sells digital imaging products and software, instrumentation, aerospace and defense electronics, and engineered systems. It entered the healthcare market in 2011 by acquiring Teledyne DALSA, which was then beginning to develop low-dose, high-resolution CMOS-based X-ray detectors, and in 2017 added Teledyne e2v, a long-term supplier of magnetrons to makers of cancer radiotherapy equipment. Medical applications sit within a digital imaging unit that generated 52% of Teledyne's sales last year, according to MedTech Dive.

Robert Mehrabian, Teledyne's executive chairman, said the two companies serve similar customers with related technologies but that their products are "uniquely complementary with minimal overlap." He said Teledyne does not provide X-ray detectors suited to high-radiation environments such as oncology, as Varex does, and has never produced X-ray tubes for radiography, fluoroscopy or computed tomography. He added that only Varex offers new advanced photon counting detectors for healthcare and industrial inspection.

Sunny Sanyal, Varex's president and chief executive, said: "This transaction provides a substantial premium for our shareholders and exciting opportunities for our customers and employees across the medical and industrial markets we serve." The release did not state the size of the premium.

Advisers and next steps

Evercore is acting as Varex's exclusive financial adviser and Orrick, Herrington & Sutcliffe as its legal counsel; Latham & Watkins and McGuireWoods are legal counsel to Teledyne. Varex said it will file a proxy statement with the SEC for a special meeting at which its stockholders will vote on adopting the merger agreement. No meeting date was given in the announcement.