Shares of Teavana, which sells tea, rose 28 percent to $12.97 in afternoon trade on the New York Stock Exchange before being halted.
News of a deal was first reported by the Atlanta Business Chronicle.
Starbucks said it will pay $15.50 for each Teavana share. Starbucks shares fell 1.6 percent to $49.51 on the Nasdaq.
Today’s @Starbucks tweet sent out around 2 p.m.
Tweet sent out around 2:15 from @Teavana:
It’s a big day for us today, we’re now joining the Starbucks family so that we can bring the perfect cup of
#tea to even more people.