Google Buys Flight Search Engine; Travel Sites Drop

Shares of online travel sites Expedia and fell in after-hours trading Thursday on word that Internet giant Google will purchase ITA Software, a flight information software company.

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Google , which announced the acquisition Thursday in a post on the company's official blog, will acquire Cambridge, Mass.-based ITA for $700 million in cash.

"We’re confident that by combining ITA’s expertise as the leading developer of flight information software with Google’s technology we’ll be able to create great user innovations in flight search," the post read.

Founded in 1996, ITA has long been a player in the flight search business. Its technology is currently used to power popular travel search engines Orbitz and Shares of Orbitz were higher in extended trade.

Google noted in its statement that it plans to honor all existing agreements with ITA.

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