"We will do for tea what we did for coffee," said Schultz. "Tea is the opportunity of a lifetime."
The deal marks the third acquisition over the past year from Starbucks, which is looking for new avenues of growth beyond its core coffee business.
Teavana chief executive Andy Mack is forecasting 500 total Teavana stores by 2015.
The world's largest coffee shop operator will pay $15.5 per share in cash for Teavana.
Starbucks had bought Tazo tea for $8.1 million in 1999.