Teledyne to Acquire Varex Imaging Corporation

Teledyne Technologies Incorporated is purchasing Varex Imaging Corporation for approximately $1.1 billion ($18.90 per share) in cash. The transaction has been unanimously approved by both companies’ Boards of Directors.

For decades, Varex has developed X-ray sources and digital X-ray detectors, and provided high-voltage interconnects and imaging software to global OEM manufacturers. Varex’s X-ray tubes, flat panel and photon counting detectors, and connect and control accessories are used in medical diagnostic imaging, non-destructive inspection, security and vehicle inspection systems, and analysis and measurement applications.

“Teledyne entered the healthcare market with the acquisition of Teledyne DALSA in 2011, which was beginning to develop low-dose, high-resolution CMOS-based X-ray detectors. Nearly 10 years ago, we expanded our presence with the acquisition of Teledyne e2v in 2017, a long-term supplier of magnetrons to cancer radiotherapy OEMs,” Teledyne Executive Chairman Robert Mehrabian said. “Nevertheless, while Teledyne and Varex serve similar customers with related technologies, our products are uniquely complementary with minimal overlap. For example, while Teledyne produces X-ray detectors, we do not provide detectors suited for high-radiation environments such as oncology, as does Varex. 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.”

The deal is expected to be completed early next year and is subject to customary closing conditions, including regulatory approvals and Varex’s stockholder approval.

Evercore is the exclusive financial advisor, and Orrick, Herrington & Sutcliffe LLP is the legal counsel for Varex. Latham & Watkins LLP and McGuireWoods LLP are the legal counsel for Teledyne.

“Joining Teledyne marks an exciting new chapter for Varex. This transaction provides a substantial premium for our shareholders and exciting opportunities for our customers and employees across the medical and industrial markets we serve,” Varex President/CEO/Director Sunny Sanyal stated. “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.”

Teledyne Technologies provides sophisticated digital imaging products and software, instrumentation, aerospace and defense electronics, and engineered systems. Its operations are primarily located in the United States, the United Kingdom, Canada, and Western and Northern Europe.

Varex Imaging Corporation designs and manufactures X-ray imaging components, which include X-ray tubes, digital detectors, and other image processing solutions that are key components of X-ray imaging systems, as well as X-ray imaging systems for industrial applications. Headquartered in Salt Lake City, Utah, Varex employs approximately 2,400 people in North America, Europe, and Asia.