PepsiCo, announced today that it has entered into a definitive agreement to acquire Poppi, an Austin-based prebiotic soda brand, for $1.95 billion.

DALLAS - PepsiCo has announced a deal to acquire Poppi, a Dallas-founded prebiotic soda brand known for its viral social media presence and gut-health benefits. The acquisition strengthens PepsiCo’s position in the growing health and wellness beverage market.

Grundy said the poppi deal makes strategic sense given ongoing pressures within PepsiCo's ( PEP) North America Beverages segment. While adding Poppi is not seen as a transformational deal, the pickup was noted to closely resemble the company's other tuck-in M&A deals over the past 15 years.