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The deal includes hardware, software and services and is to help Worldspan enhance its system by making it more accessible via the Internet and reduce costs for its customers.
Worldspan provides travel data, booking capabilities and other online products to travel agencies, travel service providers and corporations. The company was founded in 1990 and is owned by affiliates of Delta Airlines, Northwest Airlines and American Airlines.
Worldspan's system is based on IBM's Transaction Processing Facility (TPF) platform, a mainframe-based operating system and transaction processor.
Cendant, parent of Worldspan rival Galileo, signed a 10-year, $1.4bn (£876m) outsourcing agreement with IBM in late 2001 for its business units in the housing, financial and travel industries