Teledyne to buy Varex Imaging in $1.1 billion all-cash deal

Teledyne Technologies Incorporated agreed to buy Varex Imaging Corporation for about $1.1 billion in cash, paying $18.90 a share for the X-ray imaging components maker. Varex shares jumped nearly 50% in premarket trading, a sharp move that reflected how much premium Teledyne was willing to pay for a niche supplier at the center of medical, industrial and security imaging.

The transaction would bring Salt Lake City, Utah-based Varex into Teledyne’s broader industrial technology platform in Thousand Oaks, California, where the company already spans sensing, aerospace, defense, digital imaging and instrumentation. Varex designs and makes X-ray imaging components and systems, including X-ray tubes and digital detectors, products that feed into hospital scanners, factory inspection systems and security equipment. That gives Teledyne a deeper role in the imaging supply chain, not just in finished systems but in the high-spec parts that make those systems work.

The deal also underscored how industrial imaging assets remained attractive even with financing costs still weighing on corporate buyers. The price represented about a 50% premium to Friday’s close, a sign Teledyne saw enough strategic value to pay up for a business whose customers depend on precision, reliability and regulatory expertise. The acquisition was expected to close in early 2027, giving regulators and customers time to assess how much of the overlap turns into operating efficiency and how much becomes pricing power.

For Teledyne, the move fit a familiar pattern. The company has long used acquisitions to build out its imaging and sensing franchise, including FLIR Systems, and the Varex purchase would extend that playbook into specialized X-ray hardware. The combination could matter in healthcare, where hospitals are pushing for better diagnostic equipment, in manufacturing, where inspection systems are increasingly automated, and in defense and security, where dual-use imaging tools remain strategically important.

Varex had been posting recent financial disclosures of its own. The company’s fiscal 2025 annual report covered the year ended Oct. 3, 2025, and on Feb. 10, 2026, it reported first-quarter fiscal 2026 revenue of $210 million. Those results showed a company still operating with meaningful scale as Teledyne moved to fold it into a larger portfolio built around imaging, sensing and electronics.