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.
"Together, we can advance our shared vision of a healthier, more-sustainable planet", she said.
Israel-based Sodastream makes a machine and refillable cylinders allowing users to make their own carbonated drinks.
Pepsi and Israeli-based company SodaStream already have an existing relationship, with Pepsi previously selling its cola on the platform in what the company called a "learning opportunity".
"With sugary carbonates and juices struggling and no turnaround in sight, mitigating the losses through newer and healthier products will be essential for PepsiCo", said Euromonitor International analyst Matthew Barry.
"Our workers say they are making peace, and on the way making soda as well", SodaStream CEO Daniel Birnbaum said at the press conference in Tel Aviv.
Uefa Player of the Year: Luka Modric, Cristiano Ronaldo & Mohamed Salah shortlisted
Croatia's Modric also shined in the World Cup taking his national team to the final match which they lost against France. Three shortlisted maestros for this year's run are Cristiano Ronaldo , Luka Modric , and Mohamed Salah .
SodaStream shares jumped 9.4 percent to close at $142.11 in NY, while PepsiCo slipped 0.1 percent to $114.94.
Nooyi is stepping down from the top job at PepsiCo later this year, but the move shows that Pepsi's CEO-elect, Ramon Laguarta, will continue focusing on healthier alternatives.
Laguarta said PepsiCo committed to keeping Israel the headquarters for 15 years, praising the company's infrastructure and the "amazing" knowhow of factory staff.
The acquisition has been unanimously approved by the Boards of Directors of both companies. SodaStream's stock has surged more than 320% in the past two years after it rebranded itself as a sparkling water company.
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.
Goldman Sachs acted as financial advisor to PepsiCo and Centerview also acted as financial advisor to PepsiCo.