Pepsi is betting that the future of soda is at home and more in the realm of sparkling water than in aluminum cans laden with 41 grams of sugar: The beverage giant announced Monday morning that it is spending $3.2 billion, or $144 per share, to acquire at-home seltzer maker SodaStream. The deal, which Pepsi plans to fund with its cash on hand, values SodaStream at a 32% premium to its 30-day volume-weighted average price and a 10% premium to its closing price on Friday. “PepsiCo and SodaStream are an inspired match,” outgoing Pepsi CEO Indra Nooyi said in a statement Monday morning. The focus on sparkling water is also a key reason Pepsi is so willing to bet billions on the company. Wall Street, meanwhile, is happy with what it sees, sending SodaStream shares for a 10% gain in Monday’s pre-market trading session.

Source: Forbes August 20, 2018 12:56 UTC