Updated: Teledyne acquires Varex Imaging for $1.1B
This story was updated on Aug. 12.
Thousand Oaks-based Teledyne Technologies made one of the largest acquisitions by a Central Coast-based company this year when it announced it would be purchasing Varex Imaging for $1.1 billion in an effort to increase its exposure in the health care market.
Teledyne announced Aug. 10 that it would acquire all of the outstanding common shares of Varex for $18.90 per share, payable in cash, valuing the deal at about $1.1 billion, taking into account Varex’s equity awards and net debt as of April 3. The transaction was unanimously approved by the boards of directors of Teledyne and Varex, according to the press release.
Since the announcement, shares of Teledyne have remained stagnant, closing at $688.19 on Aug. 12, just a few dollars below their Aug. 10 closing price.
For Teledyne, mergers and acquisitions are nothing new, as the company has talked about how these deals help it grow in many of their major sectors. But this latest acquisition is the company’s first billion-dollar deal since it acquired FLIR in 2021 for a then-Central Coast record $8.2 billion.
Since acquiring FLIR, Teledyne has closed on five acquisitions, four of which had disclosed sale prices totaling about $854 million.
Varex has specialized in the development of X-ray sources and digital X-ray detectors and also provides 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 Chairman Robert Mehrabian said that while both companies serve similar customers, “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,” he said.
Sunny Sanyal, president and CEO of Varex, agreed, saying, “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.”
In general, medtech M&A activity has remained high, with multiple deals worth more than $1 billion being announced or closed this year, according to MedTech Dive.
Some of the largest deals of the year include Boston Scientific’s $14.5 billion purchase of Penumbra and a $1.5 billion investment in MiRus, while Abbott closed its $21 billion acquisition of Exact Sciences earlier this year.
This transaction is anticipated to be completed in early 2027.
Evercore is acting as exclusive financial adviser and Orrick, Herrington & Sutcliffe LLP is acting as legal counsel to Varex. Latham & Watkins LLP and McGuireWoods LLP are acting as legal counsel to Teledyne.
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