Valitas Health Services is acquiring Tennessee-based America Service Group (ASG) for nearly $250 million, The Wall Street Journal reports. The merger of ASG’s PHS Correctional Healthcare unit and Valitas’ Correctional Medical Services will have 11,000 employees and independent contractors serving over 400 correctional facilities. The combined health-care provider for prisons and other correctional facilities may generate revenues totaling $1.4 billion in 2011. The deal is awaiting approval from regulators and ASG shareholders.

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