Varex Imaging Corporation (VREX)

Varex Imaging agreed on 10 August 2026 to be acquired by Teledyne Technologies for $18.90 in cash for each share 3.

Stockholders vote on the deal at a special meeting set for 28 October 2026, and the company expects it to close in early 2027 43.

Two stockholder lawsuits filed in New York on 6 and 7 October say the proxy statement is misleading, and the company says the claims are without merit 4.

The business makes X-ray tubes and detectors that other companies build into scanners, and its revenue was $210.5 million in the quarter ended 3 July 2026, up 3.7 percent 2.

Refunds of earlier tariffs helped: gross margin was 36.4 percent, and the company says it would have been about 31 percent without them 2.

Varex became its own company in January 2017, when it separated from Varian Medical Systems 1.

It sells X-ray tubes and detectors mainly to makers of imaging systems, and many of its medical customers have bought from it for over 35 years 1.

Revenue was $893.4 million in fiscal 2023, fell 9 percent to $811.0 million in fiscal 2024, then rose 4 percent to $844.6 million in fiscal 2025 1.

The fall in fiscal 2024 came mostly from Medical, where revenue dropped 14 percent to $581.7 million 1.

Medical grew 2 percent in fiscal 2025 as CT, oncology and mammography sales rose $24.6 million, partly offset by a $13.7 million drop in radiography, veterinary and dental 1.

Industrial grew 10 percent to $252.0 million, helped by security inspection products and X-ray tubes 1.

Gross margin, the share of revenue left after production costs, rose to 34.4 percent in fiscal 2025 from 31.7 percent 1.

In the third quarter of fiscal 2025 it wrote off $93.9 million of goodwill, the extra amount paid in past acquisitions, in its Medical unit 1.

Bilateral United States and Chinese tariffs hurt its results in fiscal 2025 1.

China opened two investigations into imported X-ray tubes in April 2025, and both were suspended indefinitely in November 2025 1.

What it makes and who buys it

Varex makes X-ray tubes, flat panel and photon counting detectors and related software, which equipment makers build into their own imaging systems 1.

Its top five customers, led by Canon Medical Systems, made up about 40 percent of fiscal 2025 revenue, and Canon alone about 18 percent 1.

Medical

Medical made $592.6 million, 70.2 percent of fiscal 2025 revenue, for CT, mammography, cardiac, dental and other X-ray uses, at a gross margin of 33.8 percent 1.

Customers rarely switch, because parts are made to fit their machines, and replacement parts keep selling after the first sale 1.

A CT tube generally needs replacing every 2 to 6 years 1.

Industrial

Industrial made $252.0 million, 29.8 percent of revenue, from cargo and baggage security screening, linear accelerators and testing of manufactured parts 1.

Its gross margin was 35.9 percent, above Medical's, which the company links to better pricing 1.

Rivals, people and plants

In detectors it names Trixell, Canon, Vieworks, Hamamatsu, iRay and CareRay as main rivals, and it also competes with in-house tube makers at its own customers 1.

It has about 2,500 full-time employees, about 400 of them in product development, and owns its Salt Lake City headquarters 21.

Current problems

Two stockholder lawsuits and 13 demand letters challenge the merger proxy statement, and the company denies the claims 4.

The Commerce Department is also investigating imports of medical equipment, including X-ray equipment, which could bring new tariffs 2.

The umbrella, in words

Its subsidiary list names MeVis Medical Solutions AG of Germany, 73.7 percent owned, and Varex Imaging Arabia, 75 percent owned 5.

The other entries mostly carry the Varex Imaging name, in countries such as Japan, China, India and Brazil 5.

Besides Salt Lake City, it owns primary facilities in Nevada, Illinois, the Netherlands and India 1.

If the deal closes, Teledyne would become the parent and Varex would survive as a wholly owned subsidiary 3.

Varex said in its 10 August 2026 filing that the deal is expected to close in early 2027 3.

The conditions are approval by a majority of the outstanding shares, antitrust and foreign investment clearances, and no order blocking the deal 3.

The waiting period under the U.S. antitrust review known as the HSR Act is set to expire on 19 November 2026 unless it is ended early or extended 4.

Either side may end the deal if it has not closed by 10 May 2027, a date that can be extended to 27 August 2027 2.

Varex would owe Teledyne a $25.3 million termination fee in certain cases, such as ending the deal to accept a better offer 3.

After closing, Varex shares would be delisted from Nasdaq 3.

No clue on file points to a new direction yet.