The price wasn't disclosed. Fortune reported that the transaction will be worth around $200 million. In October, Reuters reported the two companies were close to a deal worth "less than $500 million."
Shares of Pepsi rose 35 cents to $102.61 Tuesday morning after the anouncement.
"KeVita has become an innovative, high-growth brand that is transforming the functional beverage space," PepsiCo Premium Nutrition general manager and VP Chris Lansing said in a statement.
KeVita produces fermented probiotic drinks as well as kombucha, a slightly sparkling black or green tea. The drinks are marketed as organic, non-GMO, gluten free and vegan. Kombucha, which originated in China, has been called an "immortal health elixir."
PepsiCo said KeVita has a "loyal and rapidly growing consumer base."
The acquisition is subject to federal approval. No further details were immediately available.
Pepsi is a holding in Jim Cramer's Action Alerts PLUS charitable portfolio.