Varex Imaging to Be Acquired by Teledyne for $18.90/Share in $1.1B All-Cash Deal
VREX has more than doubled off its 52-week low of $8.42 on elevated volume (21× avg).
Summary
Varex Imaging agreed to be acquired by Teledyne Technologies for $18.90 per share in cash, a $1.1 billion deal that will take the company private. The transaction is expected to close in early 2027, pending approvals.
Key Events · M&A and Partnerships · VREX
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Definitive Merger Agreement Signed
Varex entered into a merger agreement with Teledyne Technologies under which Teledyne will acquire all outstanding Varex shares for $18.90 per share in cash, valuing the company at approximately $1.1 billion on an enterprise basis.
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Premium to Market
The $18.90 offer price represents a modest premium to Varex's current stock price of $18.45, which is near its 52-week high, providing immediate and certain value to shareholders.
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Equity Award Treatment
All outstanding stock options, restricted stock units, and performance stock units will vest and be cashed out at the merger consideration. Named executive officers will receive aggregate payouts: CEO Sunny Sanyal $8.7M, CFO Shubham Maheshwari $2.8M, and two other executives $1.4M each.
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Closing Conditions and Timeline
The transaction is expected to close in early 2027, subject to approval by Varex stockholders, expiration of the HSR Act waiting period, and other regulatory clearances. The merger agreement includes a $25.3 million termination fee payable by Varex under certain circumstances.
Analysis · VREX · Manufacturing
Varex Imaging has entered into a definitive agreement to be acquired by Teledyne Technologies for $18.90 per share in cash, representing a total enterprise value of approximately $1.1 billion. The offer price is a modest premium to the current stock price of $18.45, which is near the 52-week high of $18.49. The transaction has been unanimously approved by both boards and is expected to close in early 2027, subject to stockholder and regulatory approvals. The deal includes a $25.3 million termination fee payable by Varex under certain circumstances. All outstanding equity awards will vest and be cashed out at the merger consideration, with named executive officers receiving aggregate payouts ranging from $1.4 million to $8.7 million. This is a transformative event for Varex shareholders, effectively capping the standalone equity story and providing immediate liquidity at a premium.
At the time of this filing, VREX was trading at $18.45 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $777.2M. The 52-week trading range was $8.42 to $18.49. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.