Teledyne Technologies (NYSE: TDY) announced Monday it has entered into a definitive agreement to acquire Varex Imaging Corporation (Nasdaq: VREX) in an all-cash transaction valued at approximately $1.1 billion. Under the terms of the deal, Teledyne will pay $18.90 per share, a striking 88% premium over where Varex stock was trading as recently as late May, when shares changed hands near $10 against a market capitalization of just $424 million. Varex shares surged 48.3% in premarket trading the day the deal was announced.