Varex Imaging, the Salt Lake City-based maker of X-ray imaging components, is being acquired by Teledyne Technologies in an all-cash deal worth roughly $1.1 billion, and Wall Street reacted immediately. Shares of the company jumped nearly 50% before the bell on Monday after Teledyne agreed to pay $18.90 per share, a price that reflects the market's read on just how attractive Varex's technology has become to a much larger industrial buyer.
The offer represents a premium of more than 50% above Varex's closing price of $12.41 on August 7, and the stock surged over 48% once trading resumed, according to Investing.com. That jump comes after Varex had been trading near multi-year lows, making the buyout a dramatic reversal of fortune for shareholders who had watched the stock languish. As Reuters reported, Teledyne Technologies has agreed to acquire the X-ray imaging components maker in the all-cash transaction.
Varex Imaging CEO Sunny Sanyal said the company's X-ray technologies fit naturally alongside Teledyne's product portfolio, and that Teledyne's resources will help accelerate adoption of Varex's advanced imaging solutions and the development of next-generation products. Teledyne Executive Chairman Robert Mehrabian, in the official company announcement, said Teledyne lacked X-ray detectors suited for high-radiation oncology environments as well as X-ray tubes for CT, radiography and fluoroscopy — gaps that make Varex's product lines highly complementary rather than duplicative, per the same announcement relayed by Investing.com.
A Familiar Name in Medical and Industrial X-Ray Components
Varex Imaging isn't a household name, but its components show up across a wide range of everyday and clinical settings. The company's X-ray components are used in medical diagnostic imaging, industrial manufacturing analysis and measurement applications, quality inspection systems, and security inspection systems. That breadth of use cases is part of what makes the company a strategic fit for a conglomerate like Teledyne, whose healthcare portfolio includes imaging and sensing technologies for medical, dental and life science applications supporting diagnosis, treatment and clinical research.
Varex began as the imaging components division of Varian Medical Systems before spinning off into its own publicly traded company on January 30, 2017, according to a PR Newswire release from that time. The separation let Varian focus on its oncology hardware business while Varex pursued growth as an independent supplier. Nearly a decade later, the Salt Lake City company employs approximately 2,450 people across North America, Europe and Asia, with operational facilities in countries including Sweden, Finland, India and the Philippines, according to PitchBook.
Strong Quarter, Tariff Recovery, and a Bet on Photon-Counting Tech
The acquisition announcement landed alongside Varex's fiscal third-quarter results, and the numbers gave shareholders even more reason to cheer. The company posted quarterly revenue of $210.5 million — $134 million from its Medical segment and $76.5 million from Industrial — along with $15.7 million in net income, per MarketBeat. Varex also reported an adjusted profit of 31 cents per share, beating analysts' expectations by 10 cents per share, according to data compiled by LSEG. Sanyal said the quarter included recovery of tariffs that had increased product costs in prior periods, even as the company navigated supply chain disruptions and China destocking trends. Varex generated $21 million of operating cash flow during the period and ended the quarter with $99 million in cash and marketable securities. The company has also been pushing into photon-counting detectors, an emerging technology that offers higher-resolution medical imaging at reduced radiation doses, and engaged with eight major original equipment manufacturers across multiple imaging modalities this year, according to AuntMinnie.
Part of a Bigger Teledyne Roll-Up
The deal is the latest in a long string of acquisitions for Teledyne, which has been building out its digital imaging business for more than a decade. The Thousand Oaks, California-based company has previously acquired Teledyne DALSA in 2011, Teledyne e2v in 2017, and thermal-imaging specialist FLIR Systems in an $8 billion transaction in 2021, according to Medical Device and Diagnostic Industry. Teledyne generated $6.12 billion in revenue in 2025 and employs roughly 15,800 workers globally across four operating divisions, per Wikipedia — a scale that dwarfs Varex's standalone operations.
The $1.1 billion transaction valuation accounts for Varex's equity awards and net debt as of April 3, and the deal is expected to close in early 2027, subject to customary regulatory clearances and Varex shareholder consent, according to Morningstar. Boards at both companies have unanimously approved the transaction. Evercore is serving as exclusive financial advisor to Teledyne, with legal counsel provided by Orrick, Herrington & Sutcliffe, McGuireWoods, and Latham & Watkins, Morningstar reported.
For now, the deal still has to clear regulatory review given Varex's global manufacturing footprint, and shareholders still need to sign off before it can close. Until then, Varex will keep operating out of Salt Lake City as an independent public company, even as its stock reflects a market already betting the sale will go through.
