Serco Group PLC (LSE:SRP) said it has secured an electronic monitoring contract worth £200 million from the UK Ministry of Justice (MOJ).
The deal to provide electronic tagging services in England and Wales starts in May next year and will run for an initial six years, Serco said in a statement.
There are options to extend the contract for a further two one-year terms, which would increase the contract value to £275 million, the supplier of services to governments added.
Commenting on the news, Serco chief executive Mark Irwin said: "Our innovative data and technology-led approach will be focussed on supporting the MOJ to make a measurable impact to reduce reoffending, support rehabilitation and keep communities safe."
Shares climbed 1.18% to 145.90p in mid-morning trade.