Teledyne to Acquire Varex Imaging in $1.1 Billion Deal, Strengthening Its Position in X-Ray Technology

Thousand Oaks, California / Salt Lake City, Utah — August 2026 — Teledyne Technologies has announced a definitive agreement to acquire Varex Imaging Corporation, a leading independent supplier of X-ray imaging components, in an all-cash transaction valued at approximately $1.1 billion, equivalent to roughly RMB 7.4 billion at recent exchange rates. Under the agreement, Teledyne will acquire all outstanding Varex common shares for $18.90 per share in cash.

The transaction represents a major move by Teledyne to expand its presence in medical and industrial imaging. The deal has been unanimously approved by the boards of directors of both companies and is expected to close in early 2027, subject to shareholder and regulatory approvals.

Varex: A Key Independent X-Ray Component Supplier

Headquartered in Salt Lake City, Utah, Varex Imaging has more than 75 years of experience in imaging technology and describes itself as a leading independent supplier of medical X-ray tubes and image-processing solutions. Its components are used by X-ray imaging system manufacturers around the world.

Varex's portfolio extends beyond conventional X-ray tubes. Its technologies include digital X-ray detectors, photon-counting detectors, high-voltage components, imaging software, and other imaging subsystems. These products serve applications ranging from medical diagnostics and computed tomography to industrial inspection, security screening, and cargo inspection.

The company has also been developing next-generation photon-counting CT technologies, reflecting the industry's shift toward higher-resolution and more information-rich X-ray imaging.

Why Teledyne Is Making the Acquisition

For Teledyne, the transaction is strategically significant because Varex's products complement rather than substantially duplicate its existing imaging technologies. Teledyne has emphasized that the two companies have relatively limited product overlap, creating opportunities to combine their technologies and expand their addressable markets.

Varex is particularly strong in areas such as X-ray sources and detectors for high-radiation environments, including oncology applications. Its expertise therefore gives Teledyne access to technologies that can broaden its existing imaging portfolio.

The acquisition also fits Teledyne's broader strategy of expanding through specialized technology businesses. Rather than focusing solely on complete imaging systems, the company has built a portfolio covering sensors, detectors, digital imaging, instrumentation, aerospace electronics, and other high-performance technologies.

Financial and Market Significance

Teledyne's offer of $18.90 per Varex share represents a substantial premium to Varex's previous market price. Following announcement of the transaction, Varex shares surged sharply, reflecting investor expectations that the acquisition will be completed at the proposed price. Reuters reported that Varex's share price rose by nearly 50% following the announcement.

Varex reported second-quarter fiscal 2026 revenue of $216 million, with its Medical segment contributing $156 million and its Industrial segment generating $60 million. The company said demand remained solid across both businesses, particularly in areas including global CT systems, cargo inspection, and photon-counting detectors.

A Broader Imaging Strategy

The acquisition comes as medical imaging continues to evolve toward higher-performance detectors, photon-counting technologies, artificial intelligence, and increasingly sophisticated digital imaging architectures. At the same time, industrial CT, nondestructive testing, security screening, and automated inspection are creating additional demand for advanced X-ray components.

By combining Teledyne's existing imaging technologies with Varex's X-ray sources, detectors, and related components, the transaction could create a broader technology platform covering more stages of the imaging chain.

For customers, the potential benefit could be access to a wider range of imaging technologies under a larger global organization. For Teledyne, Varex provides an opportunity to deepen its exposure to the healthcare market while maintaining strong positions in industrial and security imaging.

The proposed acquisition therefore represents more than a conventional corporate takeover. It is a strategic effort to strengthen Teledyne's position across the global imaging technology ecosystem. If completed as expected in early 2027, the combination could reshape the competitive landscape for advanced X-ray components and further accelerate innovation in medical, industrial, and security imaging.