HOUSTON – In late January, Cornell Cos. Inc. announced it signed an agreement to acquire Correctional Systems Inc. (CSI) for approximately $10 million. The transaction is expected to be finalized in the second quarter of 2005, pending final CSI shareholder approval.
Cornell provides privatized adult and juvenile correctional treatment and education services at 69 facilities in 16 states and the District of Columbia. CSI provides privatized jail, community corrections and alternative sentencing services.
The transaction is expected to generate annualized revenue of approximately $16 million, which would be immediately accretive to Cornell’s 2005 earnings.
The acquisition includes CSI's operations in California, New Mexico, Texas and Kansas, and involves the operation of eight jails, six community corrections facilities and five alternative sentencing programs.
In all, 986 beds will be added to Cornell's portfolio. Additionally, Cornell would gain such alternative incarceration services as electronic monitoring, day reporting, counseling and drug testing.