Teledyne Technologies has agreed to acquire Varex Imaging Corporation, a U.S.-based X-ray imaging components company, for approximately $1.1 billion in an all-cash transaction.
The deal, announced on August 10, 2026, is designed to strengthen Teledyne’s capabilities in medical imaging, X-ray tubes, photon-counting detectors, and industrial inspection.
The acquisition is strategically important because modern medical and industrial imaging systems depend on high-performance components that can produce clearer images with lower dose and better reliability. The ability to provide both the detector and the source under one portfolio is becoming increasingly important.
By combining Teledyne’s existing digital imaging and instrumentation technologies with Varex’s X-ray tubes and detectors, the companies aim to provide more integrated solutions for healthcare OEMs and industrial customers.
The transaction is expected to close in early 2027, subject to regulatory approvals and Varex stockholder approval.
Key Details of the Acquisition
| Detail | Information |
| Acquirer | Teledyne Technologies Incorporated |
| Target | Varex Imaging Corporation |
| Acquirer Country | United States |
| Target Country | United States |
| Acquirer Industry | Digital Imaging, Instrumentation, Aerospace & Defense Electronics |
| Target Industry | Medical Devices, X-ray Imaging Components, Industrial Inspection |
| Deal Type | Acquisition |
| Deal Value | $1.1 Billion (including equity awards & net debt) |
| Payment | All Cash – $18.90 per share |
| Premium | ~50-52% to pre-announcement price |
| Announcement Date | August 10, 2026 |
| Varex Founded | 2016, Spin-off in 2017 from Varian Medical |
| Varex Headquarters | Salt Lake City, Utah, U.S. |
| Acquirer Stock | NYSE: TDY |
| Target Stock | NASDAQ: VREX |
| Expected Closing | Early 2027 |
| Approvals Required | Regulatory + Stockholder Approval |
| Financial Advisor to Varex | Evercore |
| Legal Advisors | Latham & Watkins, McGuireWoods (to Teledyne), Orrick (to Varex) |
Teledyne Technologies Company Introduction
Teledyne Technologies Incorporated is a U.S.-based technology company listed on the NYSE under the ticker TDY. The company develops advanced technologies for industrial, healthcare, aerospace, defense, and scientific markets.
Its major technology areas include:
- Digital imaging and infrared sensors
- X-ray detectors and CMOS sensors
- Instrumentation and marine systems
- Aerospace and defense electronics
- Engineered systems
Teledyne operates through 4 business segments:
| Segment | Focus Area | % of Revenue (Est.) |
| Digital Imaging | FLIR, DALSA, infrared, scientific cameras | ~42% |
| Instrumentation | Marine, environmental, test systems | ~25% |
| Aerospace & Defense Electronics | Aircraft, defense, communication | ~20% |
| Engineered Systems | Government programs | ~13% |
Varex Imaging Company Introduction
Varex Imaging Corporation is a U.S.-based X-ray imaging components company headquartered in Salt Lake City, Utah. The company was founded in 2016 and became independent in 2017 via spin-off from Varian Medical Systems.
Unlike a traditional imaging system manufacturer, Varex focuses on key components that go inside those machines.
Its key capabilities include:
- X-ray tubes
- Digital detectors – flat-panel and photon-counting
- High-voltage interconnects
- Image-processing and 3D reconstruction software
- Linear accelerators for industrial
Why Is Teledyne Acquiring Varex?
| Teledyne Already Has | Varex Brings |
| CMOS-based low-dose detectors (via DALSA) | X-ray tubes for radiography, fluoroscopy, CT |
| Magnetrons for radiotherapy (via e2v) | High-radiation detectors for oncology |
| General X-ray detectors | Advanced photon-counting detectors |
| Software & Instrumentation | High-voltage interconnects & accessories |
Technology Flow: X-ray Source → Object → Detector → Software → Image → Diagnosis
What Does Varex’s X-ray Technology Do?
1. An X-ray tube generates X-rays
2. The X-rays pass through the body
3. A digital detector captures the remaining X-rays
4. Image-processing software converts that into a visible image
5. Doctor views it on workstation
In simple terms: X-ray Tube → Detector → Software → Better Image Quality → Better Diagnosis
Why Is Photon Counting Important?
| Traditional Detector | Photon-Counting Detector (Varex) |
| Converts X-ray to light, then to signal | Counts individual X-ray photons directly |
| Lower resolution | Higher resolution |
| Higher dose needed | Lower radiation dose |
| Standard material detection | Better material differentiation |
$1.1 Billion All-Cash Transaction
- $18.90 per share in cash
- Aggregate value $1.1B includes equity awards and net debt as of April 3, 2026
- Varex shares jumped nearly 50% after announcement
Varex’s Revenue Base and Financial Position
| Metric | Figure |
| FY2025 Revenue | $844.6 Million |
| FY2024 Revenue | $811 Million |
| FY2023 Revenue | $893.4 Million |
| Employees | ~2,400 across North America, Europe, Asia |
| Medical Segment | Larger – $154M in Q2 FY25 |
| Industrial Segment | Smaller but faster growing – $59M in Q2 FY25 |
| Top 5 Customers | Canon, Siemens Healthineers, GE, United Imaging, Rapiscan (~41% of revenue) |
| Market Cap (Pre-deal) | ~$451 Million |
Varex’s Work Across Medical and Industrial Programs
| Application Area | Examples |
| Medical | CT, Radiography, Fluoroscopy, Mammography, Oncology, Dental, Veterinary |
| Industrial | Non-destructive testing, Industrial inspection |
| Security | Cargo screening, Border security, Vehicle inspection |
What Could Teledyne Gain From the Acquisition?
- 1. Stronger Healthcare Portfolio
- 2. Better Vertical Integration – Same customers, complementary products, minimal overlap
- 3. Stronger Industrial Business
- 4. Integrated Mission Solutions
Teledyne Financial Position
| Q2 2026 Metric | Reported Figure |
| Revenue | $1.66 Billion |
| YoY Growth | 9.8% |
| GAAP Diluted EPS | $5.37 |
| Non-GAAP Diluted EPS | $6.28 (Beat $5.79 est.) |
| Operating Income (GAAP) | $333.2 Million |
| Free Cash Flow | $284.7 Million |
| Market Cap | ~$29 Billion |
Potential Challenges
| Risk Area | Details |
| Regulatory Approval | Needs regulatory and stockholder approvals |
| Customer Concentration | Top 5 = 41% of Varex revenue |
| Integration Costs | Tech + team integration costs |
| Employee Retention | Engineering talent is key |
| Realizing Benefits | Synergies may take time |
Outcome
The Teledyne-Varex acquisition is a strategic bet on integrated X-ray imaging. Teledyne brings low-dose CMOS detectors, software and instrumentation, while Varex adds X-ray tubes, high-dose and photon-counting detectors plus interconnects. Together they can offer OEMs a complete source-to-detector stack. For Teledyne, it deepens healthcare exposure beyond DALSA and e2v, adds a $845M revenue base with 2,400 employees, and strengthens industrial and security inspection. Risks include regulatory and stockholder approvals, high customer concentration, and integration of different detector architectures. If executed well, the $1.1B all-cash deal at $18.90 per share could accelerate next-gen imaging adoption.
