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.