On July 1st, 2010, ITA Software, Inc., a Cambridge, Massachusetts flight information software company, and Google Inc. announced that they have signed a definitive agreement for Google to acquire ITA for $700 million in cash, subject to adjustments.
ITA makes the behind-the-scenes software that organizes data on flight itineraries and prices, and powers the ticket shopping websites for big airline companies and travel distributors worldwide including Alaska Airlines, American Airlines, Bing, Continental Airlines, Hotwire, Kayak, Orbitz, Southwest Airlines, TripAdvisor, United Airlines, US Airways, Virgin Atlantic Airways and others.
The deal will allow Google to pursue the creation of new flight search tools that will enable users to find better flight information more easily on the Internet. It will also benefit the passengers, airlines, and online travel agencies by making it easier for users to comparison shop for flights and airfares and by driving more potential customers to airlines’ and online travel agencies’ websites. The deal won’t allow Google to setup airfare prices and has no plans to sell airline tickets to consumers.
More information about the deal is available at http://www.google.com/press/ita/.