Google Inc. (NASDAQ:GOOG) has confirmed that they have acquired Boston-based company ITA Software, just hours after we posted speculation that the deal was in discussions.
“While online flight search is rapidly evolving, we think there is room for more competition and greater innovation. Google has already come up with new ways to organize hard-to-find information like images, newspaper archives, scholarly papers, books and geographic data. Once we?ve completed our acquisition of ITA, we?ll work on creating new flight search tools that will make it easier for you to search for flights, compare flight options and prices and get you quickly to a site where you can buy your ticket,” stated Google VP of Search Products and User Experience Marissa Mayer. Kayak.com attempted to make a deal of their own with ITA before Google finalized the purchase. [Google Blog]
UPDATE: Google paid $700 million in cash for the deal. This is a substantial return for Sequoia, Battery Ventures, and General Catalyst — who invested $100 million into ITA in 2006. [TechCrunch]