Starbucks Corp plans to acquire Teavana Holdings Inc for $620 million in cash, Starbucks said on Wednesday.

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.

(Reporting By Martinne Geller in New York; editing by John Wallace)