(RTTNews) - Varex Imaging Corporation (VREX) and Teledyne Technologies Inc. (TDY) on Monday announced that they have entered into a definitive agreement under which Teledyne will acquire all outstanding shares of Varex for $18.90 per share, payable in cash, for an aggregate value of approximately $1.1 billion.

Separately, Varex announced financial results for the third quarter, reporting net income compared with a net loss a year ago.

Following the news, VREX surged 48.47% to $18.42.

Varex Teledyne Deal

Varex manufactures X-ray imaging components, including X-ray tubes, digital detectors, and image-processing solutions, as well as X-ray imaging systems for industrial applications.

Teledyne Technologies is a provider of sophisticated digital imaging products and software, instrumentation, aerospace and defence electronics, and engineered systems.

The deal is expected to close in early 2027, subject to customary closing conditions.

"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," said Sunny Sanyal, President, Chief Executive Officer and Director of Varex.

Evercore is acting as exclusive financial advisor and Orrick, Herrington & Sutcliffe LLP is acting as legal counsel to Varex. Latham & Watkins LLP and McGuireWoods LLP are acting as legal counsel to Teledyne.

Third Quarter Results

For the third quarter, Varex swung to net income of $15.7 million, or $0.37 per share, from a net loss of $89.1 million, or $2.15 per share, in the year-ago period.

Total revenue increased to $210 million from $203 million in the prior year.

Revenue from medical applications slipped to $134 million from $142.1 million.

Revenue from industrial applications improved to $76.5 million from $60.9 million in the prior year.

At the end of the third quarter, cash, cash equivalents, and marketable securities were $99.2 million.

VREX has traded between $9.09 and $18.47 over the last year. The stock closed Friday's trade at $12.41.

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