Aug 10 (Reuters) - Sensing-systems maker Teledyne Technologies agreed to acquire Varex Imaging for $18.90 per share in an all-cash transaction valued at approximately $1.1 billion, the companies said on Monday.
Shares of X-ray imaging components maker Varex jumped nearly 50% before the bell.
The transaction that is expected to close in early 2027 would broaden Teledyne's healthcare portfolio, which includes imaging and sensing technologies for medical, dental and life science applications, supporting
diagnosis, treatment and clinical research.
"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," said Varex CEO Sunny Sanyal.
Salt Lake City-based Varex's X-ray imaging components are used in medical diagnostic imaging, security inspection systems and quality inspection systems, as well as for analysis and measurement applications in industrial manufacturing applications.
The company posted third-quarter profit above Wall Street estimates on Monday as it recovered tariff-related costs while reeling from supply chain disruptions and China destocking trends.
"The quarter also included the recovery of tariffs that had increased our product costs in prior periods. We generated $21 million of operating cash flow," Sanyal said.
Quarterly adjusted profit came in at 31 cents per share, 10 cents ahead of analysts' expectation, according to data compiled by LSEG.
(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Joyjeet Das)
