ita
1385 days ago
 

Google agrees to buy ITA Software for $700M in cash

It’s official: Google agrees to buy ITA Software for $700 million in cash.

The agreement is subject to regulatory approvals.

Google indicates it will not transition into travel transactions, but will focus on search with ITA Software in the fold.

Google will also evaluate ITA Software’s airline reservations system business, but no decisions have been made about its fate.

Google plans to talk to airlines before making a decision about how to handle ITA’s airline reservations system business.

ITA founder and CEO Jeremy Wertheimer will head Google’s ITA unit.

“ITA’s very talented team has created an impressive product to organize flight information,” said Eric Schmidt, Chairman and CEO of Google. “Their technology opens exciting possibilities for us to create new ways for users to more easily find flight information online, and we’re looking forward to welcoming them to Google.”

“It is a privilege to work with a most skilled and dedicated team to build innovative technologies that people use every day,” Wertheimer says. “We are all looking forward to continuing and expanding our efforts as part of Google.”

Google says it will honor all of ITA’s existing customer agreements and looks forward to utilizing ITA’s QPX airline shopping and pricing system.

 
 
Dennis Schaal

About the Writer :: Dennis Schaal

Dennis Schaal was North American editor for Tnooz.

 

Comments

  1. The $700M question: How will Google take travel search global? | Tnooz

    [...] For all the proclamations in the years beforehand (hands up who heard an executive claim that the company had no designs on entering the travel industry?), Google decided it would pay $700 million to get its hands on the well-respected air shopping and pri…. [...]

     
  2. Google-ITA Software deal: Is mobile the key element? « jonathanalford

    [...] one of the factors missing from much of the commentary around Google’s proposed acquisition of ITA Software is around the mobile [...]

     
  3. Elephants courting the industry, where is the disruption? | Tnooz

    [...] will remember a few years ago, before Google announced its intention to buy ITA Software, when the search giant’s travel ad sales folk that usually prowled the halls of events were [...]

     
  4. It's official -- Google and ITA Software close the deal | Tnooz

    [...] closing of the transaction comes almost 10 months since the deal was announced on July 1, 2010, and followed months of debate by opponents and supporters of the [...]

     
  5. ITA Software works on InstaSearch and is open to hotels, cars and ancillary services | Tnooz

    [...] big question that loomed when the acquisition was announced on July 1 was what would happen to ITA’s Passenger Service System business. Would Google want to get [...]

     
  6. Google and FairSearch joy after ITA Software deal approved - which team won? | Tnooz

    [...] the coalition of travel and tech companies created to oppose the Google’s acquisition of ITA Software, appeared to struggle to contain its glee after winning what it believes are major concessions to [...]

     
  7. Google-ITA Software deal approved by US authorities, with conditions | Tnooz

    [...] potentially industry game-changing acquisition of ITA Software by Google has been given the thumbs-up by the Department of Justice in the [...]

     
  8. ITA Software begins marketing Needlebase to airlines, online travel agencies | Tnooz

    [...] course, one of the $700 million questions is what would Needle mean for ITA’s airline customers and Google Travel if Google has Needle [...]

     
  9. The agony of travel search and the eyeglass shop paradox | Tnooz

    [...] the proposed acquisition of ITA Software by Google, Kayak’s apparent serial successes, Hipmunk buzz, Everbread expectations, and many more, it [...]

     
  10. Hopper ready to unleash full text travel search system | Tnooz

    [...] search is something like Hopper, and if Google has something like this in mind for its ITA Software acquisition, then opponents of the deal may have more to worry about than they [...]

     
  11. FairSearch tries the satire route in its war with Google | Tnooz

    [...] It must be Friday in lobbyingland, with the anti-Google coalition FairSearch mocking the search giant’s efforts to talk up the benefits of its proposed acquisition of ITA Software. [...]

     
  12. Microsoft turns to Kayak for flight search to fight Google Travel | Tnooz

    [...] the day’s following Google’s July 1 announcement that it intended to buy ITA Software for $700 million, there was widespread speculation that the move would lead to new strategic [...]

     
  13. Antitrust group warns Google-ITA Software deal could hurt wider search market | Tnooz

    [...] chiming in about the pending Google-ITA Software deal, the American Antitrust Institute warns that Google has become a “one-of-a-kind firm” [...]

     
  14. Google to make travel search even more social | Tnooz

    [...] with its new-found love of all things travel, uses a trip search query to explain a little bit more how it works in this [...]

     
  15. FairSearch questions whether Google treatment of Kayak is retribution | Tnooz

    [...] the coalition opposed to Google’s acquisition of ITA Software, questions whether Google’s treatment of Kayak amounts to retribution against a competitor [...]

     
  16. Google-ITA Software deal: Why the deal is so important to Google | Tnooz

    [...] for the company, and we now understand why travel is seen as a natural fit for Google given that is trying to buy ITA Software for a cool $700 [...]

     
  17. TripAdvisor: Google abusing its power with Google Places | Tnooz

    [...] Kaufer’s broadside at Google comes during a hugely sensitive period in relations between the search giant and the rest of the industry, with the US Department of Justice still mulling over the proposed acquisition of ITA Software. [...]

     
  18. Divide and conquer - the real story behind American Airlines row? | Tnooz

    [...] This is what this debate is really about. It is about returning to divide and rule. American has realised that it must prevent any one OTA – or any one agent – controlling too much of its inventory, especially now when airlines see the likes of Google looming on the horizon. [...]

     
  19. Google travel posters will need little editing post-ITA Software deal | Tnooz

    [...] if the US Department of Justice does eventually give the search giant the thumbs-up to complete its acquisition of ITA Software, marketers will already have some nice creative to use which might make a suitable a message for a [...]

     
  20. Google-ITA Software deal: Justice Department preparing court challenge | Tnooz

    [...] U.S. Justice Department is preparing a court challenge to the Google-ITA Software deal, although a decision on whether to proceed probably won’t come until later this month or [...]

     
  21. ITA Software wins part of American Airlines Jetstream res system contract | Tnooz

    [...] all of the publicity about the Google-ITA Software deal and its QPX airfare shopping and pricing solution, observers often overlook the fact that ITA [...]

     
  22. How Google could kill the Long Tail of travel | Tnooz

    [...] down the spines of any and everyone in travel. It could mean, in a post-thumbs up world for its acquisition of ITA Software, Google results will be focused on the top tier [...]

     
  23. Why the airline-online travel agency war will not evolve to hit hotels | Tnooz

    [...] But why is all this relevant now? Well, because of what is about to happen in a different vertical in our industry, with Google’s pending purchase of ITA Software. [...]

     
  24. Tnooz in 2010 - Most popular, most commented, best comments | Tnooz

    [...] Google agrees to buy ITA Software for $700M in cash (50 comments) [...]

     
  25. Leak reveals the Apple masterplan for travel | Tnooz

    [...] With search/find (i5 project Gold Ticket) I see that Google does, indeed, stand in our way. Building on search, it has dominated the market for applications in a neutral environment. And here it does thwart us. And now it threatens the space we covet most – travel – with its purchase of ITA Software. [...]

     
  26. TripAdvisor shrugs off reports, Google blockade still in place | Tnooz

    [...] this came just 24 hours before the FairSearch lobbying group working against the proposed Google acquisition of ITA Software (which counts TripAdvisor as a member) announced a string of new members, most notably [...]

     
  27. Gen-Y Collective: Predictions 2011 | Tnooz

    [...] , Everbread launched to substantial positive feedback and Google got serious about flight search (purchase of ITA). In 2011, I think this trend will continue and even pick up steam with the inevitable launch of [...]

     
  28. Google-ITA Software deal: Microsoft and others join FairSearch campaign | Tnooz

    [...] news for the group lobbying against the proposed Google acquisition of ITA Software with news that Microsoft has finally joined the [...]

     
  29. Word-of-mouth marketing affects travel B2C and B2B | Tnooz

    [...] ITA Software. It has become a well known brand and its value has increased significantly since the Google acquisition battle started in June this [...]

     
  30. Google Places blocked from using TripAdvisor reviews | Tnooz

    [...] Wild conspiracy theorists will also point to the position TripAdvisor has in the FairSearch campaign group currently lobbying against the proposed acquisition of ITA Software by Google. [...]

     
  31. Google-ITA Software deal: Christmas gift, lump of Kohl or 2011 decision | Tnooz

    [...] the Google-ITA Software deal, is it Department of Justice decision time [...]

     
  32. Three surveys defy woes of UK travel industry, different focus needed? | Tnooz

    [...] at the expense of other, arguably more important issues of the day [disappointed to hear that Google-ITA Software deal did not get a mention at the recent ABTA Travel [...]

     
  33. Travel search site Foundem helps trigger EU probe into Google | Tnooz

    [...] Google is now facing scrutiny by two regulatory authorities after the US Department of Justice launched an inquiry into the proposed $700 million acquisition of air data technology provider ITA Software. [...]

     
  34. Buying air tickets was always tricky and is still a mess - is change coming? | Tnooz

    [...] In 2010, most global fares are point-to-point, much like domestic fares in the US. We have all the low cost carriers which do not publish fares through ATPCO. [...]

     
  35. Kayak files for IPO | Tnooz

    [...] The move has the backdrop of an increasingly bitter marketplace as Kayak and others in the FairSearch lobbying group step up their pressure against the proposed acquisition of ITA Software by Google. [...]

     
  36. Hotels.com on Twitter - with friends like these who needs enemies | Tnooz

    [...] vociferous FairSearch lobbying group seemingly hell bent on stopping Google from completing its proposed acquisition of ITA [...]

     
  37. FairSearch circles the wagons as travel execs gather in the desert | Tnooz

    [...] week many of the key figures around the Google acquisition of ITA Software ride into Phoenix, Arizona – some all guns blazing, others slightly [...]

     
  38. Google Ventures invests in rental giant HomeAway | Tnooz

    [...] not on the same scale and type of the proposed ITA Software acquisition, Google clearly has an increasingly focused eye on the travel [...]

     
  39. Google-ITA Software deal: Microsoft active behind the scenes | Tnooz

    [...] the weeks leading up to Google’s July 1 announcement that it intended to scoop up ITA Software for $700 million, Microsoft, Expedia and Kayak reportedly [...]

     
  40. Google-ITA Software deal: Who is missing from the FairSearch plot? | Tnooz

    [...] depth of ill-feeling by the likes of Expedia, Kayak, Sabre Holdings and Farelogix over the proposed Google-ITA Software acquisition, there are plenty of others remaining in the [...]

     
  41. Google-ITA Software deal: Anti-deal consortium goes public | Tnooz

    [...] Kayak, Sabre Holdings and Farelogix have unveiled the public face to their opposition of the Google-ITA Software deal with the launch of [...]

     
  42. Morten Lund on the craziness of the travel industry | Tnooz

    [...] months ago, had never heard of Everbread — a business thrust into the limelight following the Google-ITA Software acquisition and its inclusion in the now infamous ecosystem [...]

     
  43. Now Google is supposedly interested in Opodo | Tnooz

    [...] not the only or most important wrinkle in the story. Google has consistently said, pre and post the proposed acquisition of ITA Software, is it not interested in the transactional side of the travel sector, stating that it just wants [...]

     
  44. Opodo sale rumours refusing to go away | Tnooz

    [...] to the Google-ITA Software deal speculation in March and April 2010, plans by Amadeus to offload European online travel agency [...]

     
  45. Google-ITA Software deal: Bad timing for Google? | Tnooz

    [...] The Google-ITA Software deal could be huge for the travel industry — but might the pending acquisition have even larger consequences than initially envisioned for Google? [...]

     
  46. Quicksee 3D location video startup bought by Google | Tnooz

    [...] not directly related to travel (and clearly not in the same league as the proposed ITA Software acqusition), Google appears to be thinking plenty about how it can improve mapping and destinations-based [...]

     
  47. Google-ITA Software deal: Amadeus expects EU scrutiny | Tnooz

    [...] Global distribution system Amadeus has broken cover and says it is anticipating scrutiny by European regulators over Google’s acquisition of ITA Software. [...]

     
  48. Travelport gears up for launch of Universal API | Tnooz

    [...] months as intermediaries (meta and OTA) evaluate which content pipe they wish to use, if and when Google’s acquisition of ITA Software is approved after antitrust [...]

     
  49. Google Instant: Location, speed and reliability issues for travel | Tnooz

    [...] A final area to mention, inevitably, is around Google and plans specifically for travel as a result of its proposed acquisition of ITA Software. [...]

     
  50. Is this the Google Travel logo? | Tnooz

    [...] Now, conspiracy theorists might suggest that perhaps this is the start of a subtle branding exercise ahead of revealing plans for post-regulatory approval of the search giant’s acquisition of ITA Software. [...]

     
  51. Opodo sale rumours resurface, again - CEO refuses to comment | Tnooz

    [...] – this story is becoming as widely talked about in industry circles across Europe as the Google-ITA Software deal was in the US earlier this [...]

     
  52. Why Google has more to fear in travel than just regulators | Tnooz

    [...] so we now know plenty about Google, ITA Software and that acquisition story. But is it [...]

     
  53. Google-ITA Software deal: Major European headache surfaces | Tnooz

    [...] could be facing a series of awkward regulatory hurdles in Europe even if its acquisition of ITA Software is approved by US antitrust [...]

     
  54. Google results now updating like a travel metasearch site | Tnooz

    [...] planned acquisition of airfare data company ITA Software can be blamed for [...]

     
  55. Ruba shuts website ten weeks after sale to Google | Tnooz

    [...] the industry now understands a little bit more about Google’s aspirations for the travel (spending $700 million on buying ITA Software indicates a pretty strong desire to take the sector seriously), snapping up the brains, and [...]

     
  56. Google-ITA Software deal: Expedia boss issues stern warning | Tnooz

    [...] Khosrowshahi told analysts during the company’s Q2 2010 earnings call late yesterday that the Google-ITA Software deal could have “very significant consequences” on the [...]

     
  57. Google-ITA Software deal: Google gets a mobile travel app, courtesy of ITA | Tnooz

    [...] development of OnTheFly comes against a backdrop of the company’s proposed acquisition by Google and question marks over what the search giant intends to do with the business in terms of [...]

     
  58. Bitter row breaks out as Vayant alleges copyright infringement by Everbread | Tnooz

    [...] The Vayant action comes within a month of Everbread securing a funding round from Bessemer Venture Partners and after Google cited both companies – although in curious circumstances – in its now infamous travel ecosystem chart produced to accompany publicity around its acquisition of ITA Software. [...]

     
  59. Google-ITA Software deal: Why the airlines could be very happy | Tnooz

    [...] so it is for the marriage of Google and ITA Software and the creation of the Troogle Family where, in fact, suppliers will probably like [...]

     
  60. Google-ITA Software deal: Google quietly adds new rival to travel ecosystem chart | Tnooz

    [...] the Google-ITA Software deal was announced last week the search giant produced a handy diagram of how it views the travel [...]

     
  61. The Week in Travel Tech - Fantastic startups, iPad advice and THAT deal in full | Tnooz

    [...] Google agrees to buy ITA Software for $700M in cash [...]

     
  62. Everbread boss hints at groundbreaking things to come | Tnooz

    [...] the pressure cooker atmosphere of the past 24 hours every morsel of information is being scrutinised for signs of how the industry may be [...]

     
  63. Stuart MacDonald

    It’s about bloody time…

     
  64. Google-ITA Software deal: official and very unofficial reaction | Tnooz

    [...] some of the big guns of the industry are starting to give their reaction to the Google-ITA Software deal. And, others are privately voicing their [...]

     
  65. Google-ITA Software deal: Industry battle played out World Cup-style | Tnooz

    [...] There’s always a risk when we want to analyze what looks like game-changing deals like the one between Google and ITA. [...]

     
  66. Google-ITA Software deal: industry stays quiet, very quiet | Tnooz

    [...] inevitable given the enormity of the deal and predicted consequences on the travel sector, but there is tumbleweed blowing through the dusty [...]

     
  67. Google-ITA Software deal: expert analysis | Tnooz

    [...] of the Tnooz Nodes are weighing in with reaction and analysis on the Google-ITA Software deal announced on Thursday this [...]

     
  68. Jason Sarracini

    Travel technology is about to grow up. This will signal a big shift moving forward.

     
  69. Google-ITA Software deal: Schmidt vague on whether flight metasearch is in the works | Tnooz

    [...] a conference call with analysts and press this afternoon, after news broke of the $700 million cash deal, the Google chairman and CEO said he can’t answer definitively what shape new flight-search [...]

     
  70. Google-ITA Software deal: the travel ecosystem as Google now sees it | Tnooz

    [...] says the acquisition of ITA Software will create a “new, easier way for users to find better flight information [...]

     
  71. RobertKCole

    Mark your calendar – July 1, 2010 The day the travel ecosystem just got a lot more interesting.

    Google is seeking improved relevance for search results and needs to tap into the deep web to get them. ITA Software delivers the deep web to Google for air fare search.

    ITA’s Needle technology is also very interesting – one can imagine that it can help provide better context and relevance to Google Places Pages which lie at the heart of Google’s location based search efforts.

    Pure conjecture, but it seems the gap between ITA’s reportedly desired $1 Billion figure and Google’s $700 Million bid may have been ITA’s airline reservation system technology – hard to say.

    But the number I would really like to know is the perceived value of Google structurally positioning itself as the data source for Microsoft’s Bing Travel.

    My prediction is that ITA’s Matrix 2 functionality is headed toward a search results page near you at some point in the future.

    Democratization of travel information just moved closer to becoming a reality.

     
  72. Tweets that mention Google agrees to buy ITA Software for $700M in cash | Tnooz -- Topsy.com

    [...] This post was mentioned on Twitter by Dennis Schaal, Robert Cole, Jen and others. Jen said: Ack! Google buys ITA! http://bit.ly/bOrz0v Can anything stop Google? [...]

     
  73. Google-ITA Software deal: full statement and new ecosystem | Tnooz

    [...] Google acquired ITA Software today for £700 million. Here is the full statement of the acquisition: ITA Software, Inc, a flight information software company, and Google Inc today announced that they have signed a definitive agreement for Google to acquire ITA for $700 million in cash, subject to adjustments. [...]

     
 
 

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