Teledyne Technologies said Monday it will acquire Varex Imaging in an all-cash deal valued at about $1.1 billion, including equity awards and net debt as of April 3, 2026, expanding further into healthcare imaging and adding product lines it does not currently offer. Teledyne will pay $18.90 in cash for each outstanding Varex share, a premium of more than 50% to Varex's Friday close of $12.41. Varex shares jumped more than 48% in Monday trading, while Teledyne rose 0.3%. The transaction, unanimously approved by both boards, is expected to close in early 2027 subject to regulatory clearances and approval by Varex stockholders. Teledyne Executive Chairman Robert Mehrabian said Varex brings detectors suited for high-radiation environments such as oncology, as well as advanced photon-counting detectors used in healthcare and industrial inspection. The deal also adds X-ray tube manufacturing for radiography, fluoroscopy and computed tomography, a category Teledyne does not currently produce. Varex sells X-ray sources, digital X-ray detectors, high-voltage interconnects and imaging software to original equipment manufacturers worldwide, with applications across medical diagnostic imaging, nondestructive testing, security and vehicle inspection, and industrial measurement. Teledyne previously entered healthcare through its 2011 acquisition of Teledyne DALSA and expanded that presence with Teledyne e2v in 2017. Wedbush Securities said the transaction fits a broader pattern of technologically differentiated X-ray businesses attracting strategic premiums from larger industrial or aerospace acquirers. Varex President and CEO Sunny Sanyal said the combination offers a substantial premium for shareholders and should help accelerate adoption of Varex's advanced imaging products. Varex separately reported fiscal third-quarter adjusted earnings per share of $0.31, up from $0.13 a year earlier and above the $0.21 FactSet consensus. Revenue rose 3.7% to $210.5 million from $203 million but missed the $215.5 million consensus forecast. Operating cash flow was $21 million, and cash, cash equivalents and marketable securities totaled $99 million at quarter-end, down from $155 million at the close of fiscal 2025 after debt redemption and refinancing completed in March and higher inventory-related working capital. Teledyne last month reported fiscal second-quarter adjusted earnings of $6.28 per share, up from $5.20 a year earlier, on a 9.8% rise in sales to $16.6 billion, and projected full-year adjusted earnings of $24.45 to $24.65 per share. As of June 28, 2026, Teledyne held $340.1 million in cash and cash equivalents.