Go-Ahead group Govia has won the franchise to run the expanded Thameslink rail network, seeing off a rival bid by FirstGroup.
The franchise will run from seven years from September 2014. It will also include the South Central franchise and replace the current system operated by FirstGroup.
In terms of passenger numbers, trains, revenue, and staff, this is the largest franchise in the UK.
The existing First Capital Connect and Southern franchises carry 273 million passenger journeys per year, employ around 6,500 people and generate annual passenger revenues of £1.3 billion.
Govia plans to increase capacity by 50 per cent and offer more services, including 10,000 additional morning peak seats into London.
Almost 1,400 new carriages are to be introduced by Govia, which will provide up to 24 trains per hour through the Thameslink core in peak periods and invest £50 million in improving facilities.
David Brown, group chief executive of The Go-Ahead Group, said: "This award is testimony to the experience of our people of working in partnership with the Department for Transport, Network Rail and other industry stakeholders and in delivering major integration projects and change programmes."