Serco Group has signed the contract and completed financial agreements to operate the New Grafton Correctional Centre (NGCC) in New South Wales, Australia.
It was previously announced as preferred bidder on the project. When completed, NGCC would be the largest correctional facility in Australia.
Serco's contract for operation was expected to begin in 2020. The estimated total contract value to Serco over a 20-year term was about A$2.6bn, or about £1.5bn at current exchange rates.
Serco is part of the NorthernPathways consortium that would design, build and operate NGCC in a Public Private Partnership for the NSW Government (the State).
The consortium would operate the facility under a licence arrangement from the State who retain ownership of the facility and all its equipment.
The prison would inject more than A$560m into the local economy with 1100 jobs created during construction phase and about 550 permanent jobs with Serco once operational.
At 9:51am: (LON:SRP) Serco Group PLC share price was +3p at 121p