Google Inc is in talks to acquire airline IT and services provider ITA Software Inc, Bloomberg reported citing three people familiar with the matter.

Cambridge, Massachusetts-based ITA Software may seek about $1 billion, two of the people told the news agency, adding that the talks may not lead to a transaction.

With tools that help users find flight information online, ITA Software may help Google compete with travel search features offered by Microsoft Corp, the news agency said.

In March, Google stepped up its assault on Microsoft's productivity software business with the acquisition of DocVerse, a small start-up company that allows Microsoft users to edit and share their documents on the Web.

Both Google and ITA Software could not be immediately reached for comment by Reuters outside regular U.S. business hours.

(Reporting by Shrutika Verma in Bangalore; Editing by David Cowell)

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