The coffee giant said Wednesday that it sees a growing market for tea. Starbucks already owns the Tazo tea brand.
Starbucks plans to expand Teavana's network of 300 mall-based stores and add other kinds of stores as well.
Teavana shareholders will receive $15.50 per share in cash in the deal, which is expected to close by the end of the year.
Teavana gained as much as 50 percent in afternoon trading. Starbucks shares slipped 2 percent.