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Teledyne to buy Varex in $1.1B cash deal at a 52% premium
The all-in value is about $1.1 billion, including equity awards and net debt, with Varex set to receive $18.90 per share in cash.
Teledyne Technologies has agreed to acquire Varex Imaging in a cash deal valued at about $1.1 billion, including equity awards and net debt, for $18.90 per share, which represents a 52% premium to Varex's unaffected closing price, according to Yahoo Finance.
Varex surged 48.5% to $18.42 on August 10 after the announcement, while Teledyne shares were down 0.15% on the day. Varex closed about 2.5% below the offer, implying roughly 2.6% upside to the deal price.
The transaction centers on technology and customer relationships rather than paying for Varex's current growth rate, Yahoo Finance reports. Varex makes X-ray tubes, flat-panel detectors, photon-counting detectors, high-voltage interconnects, and imaging software used in medical diagnostics, oncology equipment, cargo inspection, vehicle scanning, and industrial quality control.
Teledyne already produces X-ray detectors, but management says it does not offer detectors designed for certain high-radiation environments such as oncology, and it does not supply the X-ray sources Varex provides. The companies therefore overlap across customer groups with products described as largely complementary, and Teledyne has cited anticipated synergies without quantifying them or disclosing expected EPS accretion or return targets.