Teledyne to acquire Varex Imaging in $1.1 billion deal as medtech M&A runs hot

Against the backdrop of a medtech M&A cycle that has produced multiple billion-dollar transactions in 2026, Teledyne Technologies has agreed to buy Varex Imaging for approximately $1.1 billion. The deal adds a specialized X-ray imaging components maker to a conglomerate already deriving 52% of its revenue from a digital imaging unit serving medical, industrial, and government customers.

What Varex brings to Teledyne

Varex designs, manufactures, and sells X-ray imaging components for medical and industrial use. Over the first nine months of its fiscal year, the company reported net medical revenues of $435 million, a decline of 1% against the prior-year period. Its industrial segment, smaller at $201.1 million in sales over the same window, grew faster. The medical business sells X-ray tubes, flat panel detectors, photon counting detectors, and connect and control accessories for diagnostic imaging.

Teledyne Executive Chairman Robert Mehrabian characterized the two companies' offerings as "uniquely complementary with minimal overlap." Teledyne already produces X-ray detectors but lacks the capability Varex holds in high-radiation settings such as oncology. Varex is also the sole provider of advanced photon counting detectors for healthcare and industrial inspection, a distinction that carries weight in a sector where imaging precision maps directly to clinical value.

Reading the sector cycle

Teledyne has been building its healthcare exposure for over a decade. It entered the market in 2011 through the acquisition of DALSA, a supplier of imaging technologies covering industrial, medical, aerial, and satellite applications. A follow-on deal in 2017 brought e2v technologies into the fold, adding magnetron supply for cancer radiotherapy manufacturers. Varex extends that arc into segments Teledyne could not previously serve.

The broader read-through for sector peers is plain. Medtech M&A has remained active in 2026, with several deals exceeding $1 billion either announced or closed across the year. Buyers are consolidating imaging capabilities as health systems commit capital to next-generation diagnostic equipment. That demand environment favors suppliers with differentiated components over commodity hardware.

Regulatory path and timeline

Teledyne expects to complete the Varex acquisition early next year, pending regulatory approvals. Varex CEO Sunny Sanyal said in a statement that the two companies' X-ray technologies fit naturally alongside each other and that Teledyne's resources would help accelerate adoption of Varex's advanced imaging solutions and development of the next generation of products. The macro caveat is approval timing: the close date rests entirely on when regulators clear the transaction.

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