Direct Energy to acquire First Choice Power

Direct Energy has entered into an agreement to acquire US-based electricity provider First Choice Power for $270m in cash.

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

Direct Energy Residential president Steven Murray said First Choice Power brings a good-sized customer base onto Direct Energy’s Texas business platform and will help the company continue to innovate and bring better products to Texas consumers.

The transaction, which is subject to regulatory review, is expected to close during the fourth quarter of this year.

Earlier this year, Direct Energy added to its residential and commercial customer base with the acquisition of retail energy provider Gateway Energy Services.

Direct Energy, the North American subsidiary of Centrica, is a provider of energy and energy-related services.