After the acquisition, SVI will change its name to Jamba, Inc. The chain's current management, including Paul Clayton, the company's president and chief executive officer, will remain intact.

"When we looked at Jamba Juice, we saw a unique lifestyle brand, with strong management, category dominance and solid store level economics," says Steve Berrard, SVI's chairman, in a statement. "With a long-established operating history, and an excellent opportunity for organic growth, we believe the opportunity for Jamba Juice is tremendous."

To fund the deal, various institutional investors are buying 27.4 million shares of SVI common stock at $7.50 per share in a private placement, totaling $198 million. That amount will be combined with $127 million in cash SVI holds in on a trust, part of which will also be used to grow the company.