The figure is considerably higher than the £50m the company expected to forfeit after it was unable to supply the 10,400 guards it had promised for the games, leading to the army being called in to make up the shortfall.
After months of negotiations, G4S will lose £70m of its £284m contract for the games, including its management fee being halved from £57m to £31m.
It will also pay additional costs of £11m "relating to external fees and charitable donations" and £7m for sponsorship and marketing costs.
G4S has further agreed to cover the cost of bringing in military and police to make up the numbers, coming to £48m.
Nick Buckles, chief executive of G4S said he was pleased to avoid legal proceedings over the problems.
"Whilst we are extremely disappointed to find ourselves in this position, we are pleased to have concluded these negotiations with Locog," he said. "We have accepted responsibility for the security workforce issues and, as a result of the settlement terms which we have announced today, have ensured that the overall cost to the taxpayer has been reduced significantly against the planned cost.
"The UK Government is an important customer for the group and we felt that it was in all of our interests to bring this matter to a close in an equitable and professional manner without the need for lengthy legal proceedings."
Both Locog and G4s agree that it supplied more than 80% of the security service it had been contracted to provide.
Neil Wood, chief financial officer of Locog, said the agreement protected the interests of taxpayers. "The savings arising from this settlement brings the total savings to the public purse from the Locog venue security budget to £102m ,compared to the position in December 2011. We would like to thank the military and the police for their exceptional and outstanding support during the games. We would also like to thank the G4S guards who worked alongside the military, the police and the volunteers to deliver a safe and secure games in spite of the high profile challenges faced by the G4S Group."
G4S is the largest employer listed on the London Stock Exchange, with more than 657,000 employees and operations in more than 125 countries.
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