Teledyne Technologies (NYSE: TDY) has agreed to acquire Varex Imaging (NASDAQ: VREX) for approximately $1.1 billion, expanding its imaging portfolio across medical, industrial inspection and security applications.
The boards of both companies have unanimously approved the transaction. The acquisition is expected to close early next year, subject to regulatory approvals and other customary closing conditions.
Varex develops X-ray sources, digital X-ray detectors, high-voltage interconnects and imaging software for original equipment manufacturers. Its technologies are used in medical diagnostic imaging as well as non-destructive inspection, security, vehicle inspection, analysis and measurement systems.
The company’s portfolio includes X-ray tubes, flat-panel detectors and photon-counting detectors, along with connectivity and control components. Its products support applications ranging from radiography and fluoroscopy to computed tomography and advanced industrial inspection.
For Teledyne, the transaction adds capabilities that complement its existing imaging technologies. The company entered the healthcare imaging market through its 2011 acquisition of Teledyne DALSA and expanded its presence in 2017 with the acquisition of Teledyne e2v.
Robert Mehrabian, executive chairman of Teledyne, said the two companies serve overlapping customer markets but have complementary product portfolios with limited duplication.
Teledyne already produces X-ray detectors, but said its existing products are not designed for high-radiation environments such as oncology. Varex’s portfolio includes detectors suited to those applications, alongside newer photon-counting technologies for healthcare and industrial inspection.
The acquisition also strengthens Teledyne’s position in X-ray sources. Varex manufactures X-ray tubes used in radiography, fluoroscopy and CT systems, giving Teledyne additional exposure to the equipment and component markets supporting medical imaging.
The transaction reflects broader demand for higher-performance imaging technologies across healthcare and industrial applications, where advances in detector sensitivity, resolution and photon-counting capabilities are enabling more detailed imaging and inspection.
Teledyne said the acquisition is subject to regulatory review and other closing requirements. The companies expect the deal to be completed in early 2027.
