December 21, 2010 / 1:56 PM / 9 years ago

UPDATE 1-Geo Group to buy B.I. Inc for $415 million

* Sees deal to add to co’s pro forma earnings from 2012

* Sees 2011 pro forma earns of $1.55-$1.65 a shr

* Backs Q4 earns view

Dec 21 (Reuters) - Prison operator Geo Group Inc (GEO.N) said it agreed to buy privately-held electronic monitoring service provider B.I. Inc for $415 million in cash.

Geo sees the acquisition, expected to add about $115 million to its revenue in 2011, to have a neutral impact on its 2011 pro forma earnings and to add to its pro forma earnings from 2012.

Lenders including BofA Merrill Lynch and J.P. Morgan Chase have provided $425 million of committed financing to finance the deal, the company said in a statement.

Geo Group forecast pro forma earnings of $1.55-$1.65 a share and revenues of $1.62-$1.64 billion for 2011.

It also backed its earnings outlook for the fourth quarter of 2010. [ID:nASA01ADG]

In April, the company, which has been growing through acquisitions, bought rival Cornell Cos CRN.N for about $374 million in cash. [ID:nSGE63I0HN]

Shares of Boca Raton, Florida-based Geo Group closed at $25.09 on Monday on the New York Stock Exchange. (Reporting by Renju Jose in Bangalore; Editing by Joyjeet Das)

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