PepsiCo has announced it is buying Sodastream for $3.2bn (£2.5bn).
Israel-based Sodastream makes a machine and refillable cylinders allowing users to make their own carbonated drinks.
The deal gives Pepsi a new way of reaching customers in their homes at a time when its signature sugary drinks are becoming less popular.
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.
PepsiCo will buy all outstanding shares of Sodastream for $144 each – almost 11% higher than its closing price in New York on Friday.
The stock has soared 85% this year after rising by 78% in 2017.
The takeover has already been approved by the boards of both firms.