Centrica subsidiary Direct Energy, an energy-related services provider, has signed an agreement to purchase US-based electricity provider First Choice Power for $270m in cash.

This acquisition gives Direct Energy access to the Texas-New Mexico power territory, thereby increasing its customer base in line with the company’s growth plan.

The transaction is subject to regulatory approvals and is expected to close during the final quarter of 2011.

First Choice Power, a subsidiary of PNM Resources supplies retail electricity to residential and commercial customers across Texas, US.