Melanie Felgate, senior consumer insights analyst at data and analytics company GlobalData says: "SodaStream allows consumers to customize their own beverages to create not only flavors - but potentially sugar levels - to suit their needs, helping PepsiCo better meet consumer's needs for products which are not only healthier but do not compromise on taste".
Sodastream machines inject carbon dioxide from a pressurised cylinder into a bottle of water to carbonate it.
The machines made it into ten million British homes in the 1970s and 1980s as Tommy Cooper, the comedian, right, appeared in...
SodaStream shares have jumped 49 per cent this month after the company boosted its forecast for revenue growth this year to 23 per cent and reported first-half figures that beat estimates.
Waning soda consumption and environmental concern have led soft-drink producers to try to tap the at-home market, though success has been elusive. Coca-Cola Co. ventured into the segment in 2014 when it bought a stake in Green Mountain Coffee Roasters, though the soft-drink-making system they developed was discontinued in 2016 due to weak demand.
The deal announced on Monday may be the last for PepsiCo Chief Executive Indra Nooyi, who will hand over to Ramon Laguarta later this year.More news: Woman Becomes Youngest Person Ever to Receive Face Transplant
PepsiCo will pay $144.00 per share in cash, a 32% premium. Investors have speculated the snack maker was pursuing SodaStream for several years.
In 2015, SodaStream shut down a plant in the West Bank following a boycott campaign that included targeting Hollywood actress Scarlett Johansson after she advertised its product.
And it follows in the footsteps of Plano-based Dr Pepper's recent acquisition by the parent of in-home-beverage maker Keurig. Atlanta-based Coca-Cola also makes the sports drink Powerade, while PepsiCo makes the more popular Gatorade.
Three years ago, SodaStream shut down its West Bank factory amid worldwide boycott calls and opened a sprawling new factory deep in Israel's Negev Desert instead.
PepsiCo was advised by Goldman Sachs and Centerview, while SodaStream was advised by Perella Weinberg Partners.