Israel-based Sodastream makes a machine and refillable cylinders allowing users to make their own carbonated drinks.
"With sugary carbonates and juices struggling and no turnaround in sight, mitigating the losses through newer and healthier products will be essential for PepsiCo", he said in a research note.
PepsiCo chief executive Indra Nooyi, who is stepping down following 12 years at the helm, characterised the purchase of Tel Aviv-based SodaStream as consistent with the U.S. company's sustainability push, which involves pledges on producing healthier goods, boosting water-use efficiency and reducing waste.
The purchase will probably be the last big move by PepsiCo chief executive Indra Nooyi, who said this month she's stepping down as head of the beverage company after 12 years in the job. It agreed to buy Bare Foods in May and KeVita drinks in late 2016.
PepsiCo said it is acquiring all SodaStream's outstanding shares at $144 per share, a 32pc premium to the 30-day volume weighted average price.
The deal is expected to go through by January 2019 after approval by SodaStream shareholders but the deal has been unanimously approved by the directors of both companies.
SodaStream, which is listed on the NY and Tel Aviv stock exchanges, has not been immune to the complex politics in its home region.
"SodaStream is highly complementary and incremental to our business, adding to our growing water portfolio", said Ramon Laguarta, who is set to replace Nooyi in October. The company is also experimenting with other non-bottled drinks, including Drinkfinity, which is sold in pods.
Speculation about PepsiCo or Coca-Cola buying Sodastream has bubbled for years. The company had marketed itself as a more environmentally friendly alternative to mainstream bottled drinks and therefore a threat to the giant producers.
But the notion of creating soft drinks at home has had limited success.
According to The Wall Street Journal, "Sparkling water has grown far more strongly than the overall bottled water category in the USA, clocking volume growth of 38% previous year up from 35% in 2016 according to data from industry tracker Beverage Marketing Corp".