Founded in the United Kingdom in 1903, SodaStream was a coveted device in British kitchens in the 1970s and 80s, allowing customers to create fizzy drinks by adding flavoured syrups to carbonated water, but it faded in popularity as soft drinks became cheaper.
It is also the company's first big acquisition since chief executive Indra Nooyi disclosed she would step down in October after 12 years at the helm. The PepsiCo CEO, Ramon Laguarta, claims that he thinks the company will remain in Israel "forever" because "the infrastructure is so powerful". The offer represents an 11% premium to the Friday closing price of SodaStream's US -listed stock and is 32% higher than the company's 30-day volume weighted average price. The deal will give the brand access to PepsiCo's distribution capabilities, global reach, R&D, design and marketing expertise with the aim of fuelling expansion and innovation.
Laguarta said PepsiCo had held talks with SodaStream several times in the past but wanted to make sure its business was solid before doing a deal.
SodaStream was founded in 1903 by London Gin distiller W & A Gilbey. Coca-Cola's other investments in recent years have included milk that is strained to have more protein and a push behind sparkling water.
"We feel very strongly about this partnership and what we can do with it globally", he said.
In the latest second quarter, revenue grew 31 percent, driven by growth in places including Germany and the United States, while net profit rose almost 82 percent.
Coca-Cola and Keurig Green Mountain forged a partnership in 2015 to market a counter-top cold-drinks machine, but pulled the plug the following year after it failed to take off.
Say "get busy with the fizzy" to a child of the 1980s and they will think back to the Sodastream, the do-it-yourself fizzy drinks machine notorious among parents for the mess it created.
The deal between Pepsi and Sodastream still needs to clear cursory regulatory hurdles, but PepsiCo plans to pay $144 (£113) cash per SodaStream share in the transaction using cash on hand.
The purchase, which is expected to close by January 2019, will see PepsiCo, most famous for the Pepsi soft drink, acquire a company that specializes in the production of home fizzy drink dispensers.
PepsiCo was advised by Goldman Sachs and Centerview, while SodaStream was advised by Perella Weinberg Partners.