ECARX Holdings has completed its approximately $266 million all-cash acquisition of the Flyme software business from DreamSmart Group, bringing Flyme Auto and Flyme OS fully into its automotive intelligence platform.
The transaction, first announced June 22, 2026, involved ECARX acquiring 100% of Hubei Qiguang Technology, a newly created entity carved out from DreamSmart to hold the Flyme business.
ECARX paid RMB 1.8 billion, or approximately $266 million, compared with an independent valuation of RMB 1.824 billion as of May 31, 2026.
Approximately 70% of the acquisition financing came from syndicated bank loans provided by Chinese commercial banks on market terms with a 10-year maturity.
ECARX funded the remaining approximately 30% from internal resources.
Following closing, ECARX plans to provide the acquired business with an additional RMB 200 million capital injection to support operations.
The acquired entity includes Flyme’s mission-critical intellectual property, research and development teams, engineering resources, automaker customer contracts and supporting operational infrastructure.
Flyme Auto is an in-vehicle cockpit operating system already deployed by ECARX in 3.5 million production vehicles across multiple automaker partners.
Flyme OS is a cross-device operating system built through more than 15 years of R&D and commercial deployment across vehicles, smartphones and smart wearables.
ECARX plans to operate Flyme as an independent software division.
Existing Flyme OS operators will continue receiving updates, and user data will remain under the ownership of each operator.
Flyme will complement ECARX’s Cloudpeak cross-domain software stack.
Flyme Auto will provide the in-cabin application layer for vehicles in China, while Flyme OS is designed to connect vehicles with smartphones and other smart devices.
The acquisition gives ECARX control of additional layers of its technology stack, spanning silicon, computing platforms, operating systems, AI capabilities and user-facing software.
ECARX also sees additional revenue opportunities from software licensing, integration services and monetization of connected-car ecosystems.
KEY QUOTES:
“The completion of the Flyme acquisition marks an important milestone in our strategy to build a fully integrated hardware and software platform. By bringing Flyme’s operating system, user experience, AI capabilities, and ecosystem expertise in-house, we strengthen our ability to deliver tightly optimized solutions that connect our silicon, computing platforms, and intelligent software into a unified offering. Owning the entire technology stack will enhance product differentiation, accelerate innovation, improve development efficiency, and create new revenue opportunities through software licensing, integration services, and connected car ecosystem monetization. Ultimately, Flyme positions ECARX to deliver a more compelling end-to-end experience for automakers while strengthening our long-term competitive advantage.”
Ziyu Shen, Founder and CEO of ECARX Holdings
