Monitor the spread between VREX stock and the $18.90 deal price as a merger-arbitrage opportunity — the discount reflects regulatory and timing risk. With no financing condition, primary risks are antitrust clearance and stockholder approval. Trading volume and spread dynamics will shift as the proxy is filed and the special meeting date is set. Any competing bid or regulatory pushback would widen the spread significantly.
Price Chart
Executive Summary
Teledyne Technologies (NYSE:TDY) will acquire Varex Imaging (VREX) for $18.90 per share in an all-cash transaction valued at approximately $1.1 billion, including assumed equity awards and net debt. The deal represents a significant premium to VREX's unaffected stock price and was unanimously approved by both boards. The transaction is expected to close in early 2027, subject to stockholder approval, HSR clearance, and other customary regulatory conditions, with no financing contingency.
Key Financial Metrics
Key Facts
- Teledyne to acquire Varex for $18.90 per share in cash
- Aggregate transaction value ~$1.1 billion, including equity awards and net debt
- Unanimously approved by boards of both companies
- Expected close in early 2027
- No financing contingency — Teledyne will use existing credit facility
- Evercore provided fairness opinion to Varex board
- Termination fee of $25.3 million payable by Varex under certain circumstances
- Named executives' outstanding equity awards will accelerate and cash out at closing: Sanyal $8.7M, Maheshwari $2.77M, Hartmann $1.45M, Jonaitis $1.45M
- Varex will file proxy statement within 30 days; special stockholder meeting to follow SEC clearance
Financial Impact
VREX shareholders receive $18.90/share cash, implying substantial premium over the unaffected price. Total enterprise value ~$1.1B.
Risk Factors
- Regulatory approvals (HSR, foreign investment laws) may delay or block the deal
- Stockholder approval required — though board unanimously recommends
- Deal may be terminated if not closed by May 10, 2027 (extendable to Aug 10, 2027 under certain conditions)
- Potential stockholder litigation challenging the transaction
- Integration risk post-close could affect deal value perception
- Competing superior proposal could emerge despite no-shop clause
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 8 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (VREX) — Batch item 1 | 0001104659-26-093349 |
| Document: tm2622593d1_8k.htm | 0001681622-26-000064 |
| Document: tm2622593d1_ex99-1.htm | 0001681622-26-000065 |
| Document: 0001104659-26-093349-index-headers.html | 0001104659-26-093349 |
| Document: 0001104659-26-093349-index.html | 0001104659-26-093349 |
| Document: 0001104659-26-093349.txt | 0001104659-26-093349 |
| DEFA14A Filing (VREX) — Batch item 7 | 0001681622-26-000064 |
| DEFA14A Filing (VREX) — Batch item 8 | 0001681622-26-000065 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 15, 2026 17d ago | Insider Cluster | $18.47 $18.49 | ▼ −0.11% | ▲ +0.71% | $18.49 (−0.11%) |
Sep 14, 2026 18d ago | 144 | $18.46 $18.47 | ▲ +0.05% | ▼ −1.60% | $18.49 (+0.16%) |
Sep 11, 2026 20d ago | 144 | $18.46 $18.47 | ▼ −0.05% | ▲ +1.60% | $18.49 (−0.16%) |
Aug 10, 2026 7w ago | DEFA14A | $18.58 $18.46 | ▼ −0.65% | ▼ −0.24% | $18.49 (−0.48%) |
Aug 10, 2026 7w ago | DEFA14A | $18.58 $18.46 | ▼ −0.65% | ▼ −0.24% | $18.49 (−0.48%) |
Aug 10, 2026 7w ago | 8-K / DEFA14A | $18.58 $18.46 | ▼ −0.65% | ▼ −0.24% | $18.49 (−0.48%) |
Aug 10, 2026 7w ago | 8-K | $18.46 $18.46 | · 0.00% | ▲ +0.05% | $18.49 (+0.16%) |
Jun 11, 2026 16w ago | Institutional Cluster | $11.04 $10.53 | ▼ −4.62% | ▼ −5.29% | $18.49 (+67.48%) |
US Market Status
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