The German investment firm, JAB Holding will pay a 78% premium to Friday's closing price to buy the company.
JAB is offering $92 a share. While more than Friday's price, it's a discount to the $157 share price high the company enjoyed in November 2014.
The deal will make JAB the biggest player in the North American single-serve coffee pod market.
"Keurig Green Mountain represents a major step forward in the creation of our global coffee platform," said JAB chairman Bart Becht, in a statement.
JAB has invested heavily in the US coffee market. It bought Caribou Coffee Co and Peet's Coffee & Tea in 2012 and formed a joint venture between coffeemakers DE Master Blenders and Mondelez International in July.
Keurig will continue to operate as an independent company after the purchase.
Coca-Cola - Keurig's biggest investors- voiced its support for the deal in a statement. Coca-Cola will take a 17.4% stake in the new private company.
"We have enjoyed a strong partnership with Keurig Green Mountain, and will continue our collaboration with JAB in order to capitalize on the growth opportunities in the single-serve, pod-based segment of the cold beverage industry," said Muhtar Kent, Coca-Cola's chief executive.
Despite the higher cost of a single-serve coffee pod compared to a cup of filter coffee, the popularity of the machines continues to grow globally.
According to Euromonitor International over the next three to five years, sales of single serve coffee pods are expected to grow by 5% in the US, 10% in Canada and 8% in Mexico. The research firm said the coffee pod business already accounts for 40% of the $15bn global coffee market.
The business is not without its critics. The plastic pods have been criticised for increasing the amount of waste in landfills
In March the creator of the K-cups, John Sylvan, told The Atlantic magazine he did not use the machine and acknowledged their cost and impact on the environment.
"I feel bad sometimes that I ever did it," Sylvan told the magazine.

London's first Lumiere festival will feature illuminations and animations projected at 20 locations in the West End and Kings Cross over four nights.
Julian Opie will be among more than two dozen artists taking part.
The Durham version has been running since 2009 and attracted 175,000 people in 2013.
Almost 180,000 turned out when producers Artichoke staged a Lumiere in Londonderry when it was UK City of Culture the same year.
The London event will take place from 14-17 January. Mayor Boris Johnson said it would be "a dazzling new festival for the capital" that would "expel the post-Christmas blues".
The first artists to be confirmed for London are:
Artichoke director Helen Marriage said: "Lumiere was born in Durham and its incredible success has been recognised across the world. Lumiere London will be a very different event with its own artistic programme, but the principles remain the same."
This year's Lumiere will take place in Durham from 12-15 November.

Brazil succeeded Philippe Montanier following the Frenchman's sacking on 14 January.
The 54-year-old's only game in charge to date saw him oversee the 1-0 victory over Bristol City on Saturday.
"I've been here five years. I love the football club and will do whatever they ask me to do," Brazil said.
Despite the win over the Robins, Forest are 19th in Championship table and just five points above the relegation zone.
Brazil added: "At this moment in time, I'm not aware of where the club is in terms of looking for a new manager.
"From our point of view, we're very focused on making sure we do our jobs properly. You can tell when a group of players are on board with you, and they're on board with us.
"I've been speaking to the owner about a number of things, and from my point of view he's been very supportive. We're trying very hard to bring some players in, and I'm getting very well supported by the chairman with that."
Ben Osborn, who scored the winner against Bristol City, said: "It feels like a new manager has come in and taken over."
Keurig Green Mountain, which makes K-cups single-serve coffee pods, said it has accepted a $13.9bn (£9.2bn) bid.
[NEXT_CONCEPT]
A major festival of light art is to be staged in London next year by the people who organise the biennial Lumiere festival in Durham.
[NEXT_CONCEPT]
Interim boss Gary Brazil says he would take any role at Nottingham Forest and has not ruled out accepting the manager's job on a longer-term basis.