NEW YORK, August 11, 2026, 00:05 EDT – Teledyne Technologies is acquiring Varex Imaging in a deal worth $1.1 billion, valuing the X-ray equipment company at roughly 1.3 times its annual revenue.
- Teledyne has consented to acquire Varex for $18.90 per share in cash.
- The enterprise value, estimated at approximately $1.1 billion, represents about 1.3 times the midpoint of Varex’s 2026 revenue forecast.
- Varex stock climbed 48.5% on Monday, coming close to the offer’s 52% premium.
- The deal is anticipated to be finalized in early 2027, pending the necessary approvals from shareholders and regulators.
Teledyne Technologies NYSE:TDY will acquire Varex Imaging NASDAQ:VREX in a roughly $1.1 billion all-cash transaction. The deal prices the X-ray components firm at $18.90 per share.
The price amounts to about 1.3 times the midpoint of Varex’s fiscal 2026 revenue forecast. While that is a subdued valuation for a niche imaging company, Teledyne will also assume Varex’s debt.
The balance-sheet bridge is significant. In its most recent complete filing, Varex disclosed net debt of approximately $263 million. With equity value, calculated using the latest diluted share count, at around $792 million, debt, awards, and rounding account for the bulk of the enterprise value.
| Deal measure | Value | Investor read-through |
|---|---|---|
| Cash offer | $18.90 a share | Fixed amount |
| Premium to August 7 close | About 52% | Significant control premium |
| Approximate equity value | $792 million | Figure based on 41.9 million diluted shares |
| Enterprise value | About $1.1 billion | Factors in equity awards and debt |
| EV / 2026 revenue guidance midpoint | About 1.3 times | Calculated from $870 million midpoint |
Both companies verified the offer terms and timeline for closing, with Reuters and The Wall Street Journal each confirming the details. The estimated equity value is based on Varex’s most recent diluted share count as reported.
Shares of Varex climbed 48.5% on Monday, ending slightly under the cash offer and maintaining a narrow gap to account for timing and deal uncertainty.
The strategic alignment is stronger than the headline premium indicates. Teledyne’s portfolio includes X-ray detectors, but it does not have Varex’s high-radiation devices used for oncology.
Teledyne Executive Chairman Robert Mehrabian stated, “For example, while Teledyne produces X-ray detectors, we do not provide detectors suited for high-radiation environments such as oncology, as does Varex.” Source
Varex supplies tubes, digital detectors and imaging software. Its offerings are used in medical scanners, cargo inspection systems and industrial inspection machinery.
“Teledyne’s product range is a natural match for our X-ray technologies, and its backing will enable us to speed up the adoption of our advanced imaging solutions, as well as the creation of next-generation products,” said Varex Chief Executive Sunny Sanyal. Source
| Operating measure | Teledyne | Varex |
|---|---|---|
| Most recent quarterly revenue | $1.663 billion | $216 million |
| Main segment / business | Digital Imaging: $868.7 million | Medical: $156 million |
| Most recent quarter free cash flow / operating cash flow | $284.7 million free cash flow | $(2) million operating cash flow |
| Leverage reported | 1.1 times | 2.2 times net debt / adjusted EBITDA |
| 2026 guidance | Adjusted EPS: $24.45-$24.65 | Revenue: $860-$880 million |
Teledyne reported $1.663 billion in sales and $284.7 million in free cash flow for the second quarter. Digital Imaging accounted for 52% of total revenue. Varex’s latest full quarterly report disclosed $216 million in revenue, $88 million in cash and about $263 million in net debt.
Teledyne has the financial capacity to support the transaction. Free cash flow for a single quarter represented approximately 26% of the acquisition cost, and leverage was 1.1 times.
Varex reported stronger earnings on the day of its announcement. The company’s adjusted earnings per share came in at $0.31, exceeding the LSEG forecast of $0.21. Operating cash flow stood at $21 million.
The outcome eases immediate worries over execution. However, it does not eliminate challenges from supply-chain disruptions or sluggish Chinese inventory demand, both mentioned in the latest report.
| Pre-deal analyst view | Rating | Price target | Offer premium to target |
|---|---|---|---|
| B. Riley | Buy | $18.00 | 5.0% |
| Oppenheimer | Outperform | $18.00 | 5.0% |
| Jefferies | Hold | $14.50 | 30.3% |
| Five-analyst consensus | Buy | $18.00 average | 5.0% |
The $18.90 offer is higher than the most recent targets set by B. Riley, Oppenheimer and Jefferies. Prior to the deal, the average target price from five analysts stood at $18, spanning a range of $12 to $22.
The market’s reaction shows a recognition of that reset. The proposal delivers prompt value to Varex shareholders compared to previous expectations, while Teledyne acquires a complementary niche at a modest revenue multiple.
Risks: The deal requires approval from Varex shareholders and regulators. The extended timeline to early 2027 brings risks related to demand from China, supply-chain expenses and potential setbacks with integration.
The forthcoming milestone is the merger filing and subsequent shareholder vote. Investors will want to monitor if Teledyne specifies synergy estimates while maintaining its leverage edge of 1.1 times.
