Why Is VREX Stock Surging Today?

Teledyne Technologies is set to acquire all outstanding common shares of Varex Imaging for $18.90 per share payable in cash, representing a significant premium of over 50% over Friday’s closing price.

• The transaction is expected to be completed in early 2027. 
• The firms noted that the aggregate value for the transaction is approximately $1.1 billion, which factors in Varex’s equity awards and net debt as of April 3, 2026.
• Varex also announced its third-quarter results with revenue rising nearly 4% year-over-year to $210.5 million compared to an estimated $215.5 million.

Shares of Varex Imaging Corporation (VREX) shot up over 48% in Monday’s pre-market trading after announcing that Teledyne Technologies (TDY) will acquire the firm.

The companies noted that the aggregate value for the transaction is approximately $1.1 billion, which factors in Varex’s equity awards and net debt as of April 3, 2026.

Teledyne Offers Significant Premium For Varex

According to the joint statement by both companies, Teledyne will acquire all outstanding common shares of Varex for $18.90 per share payable in cash. The price represents a significant premium of over 50% over Friday’s closing price of $12.41. The transaction is expected to be completed in early 2027. 

Sunny Sanyal, President, Chief Executive Officer and Director of Varex, noted that the transaction provides a substantial premium for the company’s shareholders, exciting opportunities for its customers and employees across the medical and industrial markets we serve. 

“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,” Sanyal said.

Varex Imaging’s Third-Quarter Performance

Varex also announced its third-quarter results on Monday. Revenue rose nearly 4% year-over-year to $210.5 million compared to an estimated $215.5 million. Adjusted earnings per share (EPS) came in at $0.31 versus the consensus estimate of $0.20, according to Koyfin data.

Sanyal noted that the quarter also included the recovery of tariffs that had increased the firm's product costs in prior periods. “We generated $21 million of operating cash flow and enter the fourth quarter with continued momentum,” he said.

Cash And Cash Equivalents

At the end of the third quarter, Varex's cash, cash equivalents, and marketable securities stood at $99 million compared to $155 million at the end of fiscal year 2025, with the change reflecting debt redemption and refinancing completed in March, along with increased working capital associated with inventory. 

Meanwhile, on Stocktwits, retail sentiment surrounding TDY shares continued to trend in the ‘bullish’ territory over the past 24 hours amid moderate chatter. For VREX stock, the sentiment continued to trend in the ‘neutral’ territory amid an increase in retail chatter.

TDY shares have gained over 33% since the beginning of the year, while VREX shares have gained over 6%, not accounting for Monday’s pre-market movement.

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