MOUNTAIN VIEW, Calif. ( TheStreet) -- Google ( GOOG) has clinched a deal to acquire flight information specialist ITA Software for $700 million. The tech giant has signed a definitive agreement to buy ITA in an all-cash deal, according to a statement released by Google. Used by both airlines and online travel agencies, ITA sells software for managing reservations and airfare pricing, as well as an Internet booking engine.
Founded by M.I.T. scientists, ITA will let Google offer more specialized Internet travel services. In a statement, the search giant said that it will create new flight search tools, enabling users to find better flight information more easily on the Internet. Privately-held ITA already works with some of the travel industry's biggest names, including Continental Airlines, ( CAL) U.S. Airways, ( LCC) and online retail giants Orbitz and Kayak. Both Google and ITA have already approved the transaction, although Reuters recently reported that the deal has prompted antitrust concerns elsewhere in the travel industry. Google shares closed down $5.46, or 1.23%, at $439.49 on Thursday. -- Reported by James Rogers in New York Follow James Rogers on Twitter.