Teledyne inks $1.1B takeover of Varex Imaging. Buying Varex will increase Teledyne's exposure to the healthcare market. Teledyne said the companies' imaging technologies complement each other with minimal overlap. Published Aug. 11, 2026 Dive brief: * Teledyne Technologies said Monday it has agreed to buy Varex Imaging for about $1.1 billion. * Varex designs, manufactures and sells X-ray imaging components and other products for use in medical and industrial applications. * Teledyne provides digital imaging technologies for industrial, government and medical use but has minimal overlap between its portfolio and Varex's products. Dive insight: Teledyne entered the healthcare market in 2011 through the acquisition of DALSA, which sold imaging technologies for industrial and medical use, as well as for aerial and satellite imaging. In 2017, Teledyne acquired e2v technologies, a supplier of magnetrons to manufacturers of cancer radiotherapy devices. Medical applications are part of a digital imaging unit that generated 52% of Teledyne's sales last year. Buying Varex will further increase Teledyne's exposure to the healthcare market. Over the first nine months of its fiscal year, Varex reported net medical revenues of $435 million, down 1% on the prior year period. The company's industrial unit is smaller, with sales of $201.1 million in the period, but faster growing. Varex's medical business markets X-ray tubes, flat panel and photon counting detectors, and connect and control accessories for use in diagnostic imaging. Teledyne sells related technology to similar customers, Executive Chairman Robert Mehrabian said in a statement. Yet the companies' products "are uniquely complementary with minimal overlap," Mehrabian said. The executive said that while Teledyne produces X-ray detectors, it lacks Varex's ability to provide detectors for high-radiation environments such as oncology. Similarly, only Varex provides new advanced photon counting detectors for healthcare and industrial inspection. "Our X-ray technologies fit naturally alongside Teledyne's product portfolio, and its resources will help us accelerate adoption of our advanced imaging solutions and development of the next generation of products," Varex CEO Sunny Sanyal said in a statement. Teledyne will need regulatory approvals to close the deal. The company expects to complete the buyout early next year. Medtech M&A activity has remained high, with multiple deals worth more than $1 billion being announced or closed this year.

Deal valued at $1.1 billion sends this X-Ray stock soaring 48%. Varex Imaging (VREX) soared over 48% after Teledyne Technologies (TDY) announced it will acquire the X-Ray company in a deal valued at about $1.1 billion. Teledyne shares edged higher, rising within a buy zone. Teledyne, part of IBD's aerospace and defense industry group, agreed to pay $18.90 per share in cash, a premium of 52% from Varex's closing price on Friday. Breakaway Gaps: How To Buy Strength While Managing Your Risk If you missed the opportunity to buy a winning stock after a gap up, don't panic. Here's how to use the breakaway gap to find a new entry. 0 seconds of 7 minutes, 2 secondsVolume 0% Breakaway Gaps: How To Buy Strength While Managing Your Risk See All Videos Salt Lake City, Utah-based Varex makes X-ray imaging components and software. Its products are used in medical diagnostic imaging, vehicle inspection systems and other areas. The acquisition bolsters Teledyne's imaging business. In the second quarter, Teledyne's imaging segment recorded $868.7 million in sales, making it the largest of its four segments and more than half of total revenue. While the two companies serve similar customers, their products are complementary and share minimal overlap, Teledyne Executive Chairman Robert Mehrabian said in the announcement. "For example, while Teledyne produces X-ray detectors, we do not provide detectors suited for high-radiation environments such as oncology, as does Varex," he 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." IBD newsletters. Get exclusive IBD analysis and actionable news daily. The deal is expected to close in early 2027. Both boards approved the deal, but Varex shareholder and regulatory approvals are pending. Varex stock soars, Teledyne in buy zone. Varex shares soared 48.5% to 18.43 in afternoon trading, the highest price since February 2024. The stock gapped above a 27-week base that resembles a double bottom with a 12.77 buy point. It has a 49 Composite Rating. Also Monday, Varex issued a mixed second-quarter report. Sales of $210.5 million rose 4% but lagged the FactSet consensus estimate. Non-GAAP earnings of 31 cents a share beat expectations, however. Teledyne stock edged higher and remained in range of the 687 buy point of a cup base. It had an early entry at 672. The Thousand Oaks, Calif.-based company has an 87 IBD Composite Rating. YOU MAY ALSO LIKE: