Galliford said the price “represents a very attractive valuation” for the £409m turnover business which posted a £4m operating loss last year.
Miller has been restructured and exited a number of loss-making contracts and is expected to return to the black this year.
Galliford said it has identified another £7m of “cost synergies” and will launch a further round of restructuring with a one-off cost of £4m during the next 12 months.
The firm declined to comment on potential job losses but said the “vast majority” of Miller Construction’s 700 staff would be transferring over.
Miller Construction chief executive Chris Webster will not be transferring as part of the deal and will remain with the Miller Group.
Galliford said the deal would boost its presence on national and regional frameworks and “is consistent with Galliford Try’s stated strategy of disciplined and selective growth in its construction business”.
The enlarged construction business now has a turnover of £1.25bn with a target by 2018 of £1.5bn.
The acquired order book of £1.4bn doubles Galliford Try’s order book to £2.8bn.
Greg Fitzgerald, Chief Executive of Galliford Try, said: “We are delighted to announce the acquisition of Miller Construction, achieved at a very good price and with no net cash consideration.
“The acquisition brings together two construction businesses with a strong strategic fit and accelerates our strategy of growth into an improving marketplace.”
Philip Bowman, Chairman of The Miller Group, said: “The acquisition of Miller Construction by Galliford Try will provide it with a strong base from which to grow its competitive position and continue to serve its clients.
“It will also enable The Miller Group to concentrate all its efforts on expanding its property interests now that the housing and commercial property markets are again showing strong signs of growth.”