Varex Imaging Shares Soar Nearly 50% on $1.1 Billion Teledyne Acquisition Deal

Shares of Varex Imaging went into overdrive this morning, rocketing up nearly 50% in pre-market trading to around $18.55. The catalyst? Teledyne Technologies (TDY) dropped a bombshell by agreeing to buy every outstanding share of Varex Imaging at a cash price of $18.90 per share.

This deal values Varex Imaging at roughly $1.1 billion when you factor in equity awards and net debt as of early April 2026. Both companies' boards gave a thumbs up to the arrangement, and the acquisition is targeted to wrap up in the first quarter of 2027, provided regulators sign off and shareholders give their OK.

Backing into the numbers, the offered price packs a serious premium. Varex's stock had only managed a 52-week high near $14.56, so $18.90 feels like a golden handshake well above recent levels. Before today's frenzy, the stock had been hovering near some of its lowest points in years.

Varex Imaging is known for crafting X-ray imaging parts that serve the medical, industrial, and security sectors, a niche that evidently sparked enough interest for Teledyne to act decisively.

And let's not confuse this move with general market push - while the S&P 500 and NASDAQ lifted modestly by a fraction of a percent in pre-market hours, none of those gains come close to explaining this spicy jump in VREX. This surge is 100% tied to takeover chatter.

Adding to the drama, Varex had earnings scheduled for after the market close today, but the acquisition news stole the spotlight outright, leaving those numbers in the shade for now.

The all-cash nature of the deal combined with unanimous board approval and a juicy takeout premium threw the door wide open for one of Varex's most dramatic single-day price bursts ever.

While uncertainty about the regulatory path and shareholder votes remains, the deal price is pretty much the new floor for Varex shares in the near term. The acquisition clearly casts a long shadow over the company's near-term trading dynamics.

It'll be interesting to see how things unfold and whether this move prompts more M&A activity in the imaging tech space. Till then, keep an eye on how VREX closes the day and what details emerge in the next few weeks.