Online travel agency Expedia will soon own rival online travel booking company Orbitz for about US$1.6 billion, sources said.

The deal has already been approved by the boards of both Expedia and Orbitz but still awaits the go signal from shareholders and regulators.

The US$1.6 billion price tag is based on the US$12 share offer by Expedia to Orbiz, which closed at US$9.62 a share on Wednesday.

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Sources said Expedia is buying out Orbitz Worldwide as part of its efforts to increase customer base in an industry described as highly competitive.

It was still not know if the acquisition will include Orbitz's other websites such as ebookers.com and CheapTickets.com

"We are attracted to the Orbitz Worldwide business because of its strong brands and impressive team," Expedia CEO Dara Khosrowshahi said. "This acquisition will allow us to deliver best-in-class experiences to an even wider set of travelers all over the world."

Launched in 1996 by a small division within Microsoft Corp. , Expedia went public in 1999 and has since grown into a travel giant. Among the brands in its portfolio are Hotels.com, Hotwire, eLong Inc. and Trivago.

Orbitz CEO Barney Harford said the company is excited to join the Expedia family.

"Our mission at Orbitz Worldwide has been to build our brands to be the world's most rewarding places to plan and purchase travel.  We're excited for Orbitz Worldwide to join the Expedia, Inc. family and for our teams to work together to further enhance the offerings we provide to our customers and partners," Harford said.

Expedia has been spending the past year buying other brands as it aims to add new customers. In November, the company paid about US$612 million to acquire Australia's Wotif Holdings Ltd.

Expedia also agreed to buy Sabre Corp. 's Travelocity brand for US$280 million.

TagsExpedia, Orbitz