Travel search site Farecast has confirmed that it has been acquired by Microsoft.

Published: 18 Apr 2008

Travel search site Farecast has confirmed that it has been acquired by Microsoft.

For its part, Microsoft stated: "Farecast has been a partner of ours on MSN Travel and we look forward to working closely with the Farecast team to incorporate and apply its technology in new and interesting ways."

Microsoft did not confirm the purchase price, but a source familiar with the deal put the price tag at $115 million.

Earlier this week, it was reported that Farecast had been sold for more than $75 million, but the buyer was not known at the time.

In January this year, the company had announced the completion of an oversubscribed $12.1 million Series C financing led by Sutter Hill Ventures. Other new investors in Farecast included PAR Capital Management, Pinnacle Ventures, and Farecast board member and former Expedia CEO, Erik Blachford. Existing investors, Greylock Partners, Madrona Venture Group, and WRF Capital also participated to the round. With the close of this latest financing, Farecast has now raised approximately $20.6 million in venture funding.