Teledyne Technologies Incorporated (NYSE:TDY) has agreed to acquire Varex Imaging Corporation (NASDAQ:VREX) for $18.90 per share in cash, a deal the companies value at roughly $1.1 billion once Varex's equity awards and net debt as of April 3, 2026, are factored in. Announced August 10, 2026, the merger agreement was approved unanimously by both boards.
Varex makes X-ray tubes, flat panel and photon counting detectors, high-voltage interconnects, and imaging software for OEM manufacturers. Its components show up in medical diagnostic imaging, non-destructive inspection, security and vehicle inspection systems, and analysis and measurement applications, putting a chunk of its business squarely in the industrial inspection space Teledyne already serves through other divisions.
Robert Mehrabian, Executive Chairman of Teledyne, framed the fit as complementary rather than overlapping. "While Teledyne produces X-ray detectors, we do not provide detectors suited for high-radiation environments such as oncology, as does Varex," Mehrabian said. "In addition, only Varex provides new advanced photon counting detectors for healthcare and industrial inspection. Finally, while Teledyne produces various vacuum electronics, like magnetrons, we have never produced X-ray tubes for radiography, fluoroscopy or computed tomography applications." What's new here is the photon counting piece: engineers running industrial CT or NDT scans will care about whether Varex's photon counting detectors, which Teledyne doesn't currently build, end up integrated into Teledyne's own inspection systems once the deal closes.
The acquisition extends a run of imaging deals for Teledyne, which entered the healthcare X-ray market through its 2011 purchase of Teledyne DALSA, then developing low-dose, high-resolution CMOS-based X-ray detectors, and followed with the 2017 acquisition of Teledyne e2v, a supplier of magnetrons to cancer radiotherapy OEMs. Sunny Sanyal, President, Chief Executive Officer and Director of Varex, called the deal an "exciting new chapter for Varex," adding that Teledyne's resources would help "accelerate adoption" of Varex's imaging technology.
The transaction still needs approval from Varex shareholders and regulators, with Evercore advising Varex and Latham & Watkins and McGuireWoods representing Teledyne. If it closes as planned in early 2027, it will be Teledyne's third X-ray imaging acquisition in fifteen years, after Teledyne DALSA in 2011 and Teledyne e2v in 2017.
