ECARX announced it entered into a definitive agreement to acquire the full Flyme software business portfolio, including Flyme Auto and the cross-device Flyme operating system. The deal is intended to secure mature, production-proven software capabilities and strengthen ECARX’s proprietary software stack and end-to-end operating system capabilities.
Flyme Auto OS has already been deployed by ECARX in more than 2 million production vehicles across multiple OEM partners. And Flyme OS is a mature mobile operating system built on more than 15 years of R&D iteration and mass-market deployment experience, with implementations spanning passenger vehicles, smartphones, smart wearables, and other connected devices.
The definitive agreement represents a significant expansion of ECARX’s preliminary acquisition plan announced in April 2026. Following due diligence, ECARX determined that a full acquisition would better support its long-term product and strategic objectives.
The acquisition will be implemented through the purchase of a 100% equity interest in Hubei Qiguang Technology Co., Ltd., a new entity carved out from DreamSmart Group, from three selling shareholders for RMB1.8 billion, or approximately $266 million. The selling parties include Wuhan Xingji Meizu Technology Co., Ltd., Zhuhai Meizu Technology Co., Ltd., and Hubei Xingji Meizu Group Co., Ltd.
The acquired entity is expected to own the full Flyme business portfolio, including Flyme Auto and Flyme OS. The two platforms provide full-stack software infrastructure across multi-screen cabin interaction, mobile IoT-vehicle connectivity, core middleware, UI/UX frameworks, and application development toolkits. Within six months after closing, the acquired entity is expected to house the mission-critical Flyme intellectual property, R&D teams, engineering resources, OEM customer contracts, and supporting operational infrastructure.
An independent valuation as of May 31, 2026, determined the acquired entity’s equity value at RMB1.824 billion. ECARX said the target software platform achieved profitability in 2026 on management accounts, driven by revenue from software licensing, custom development, and intelligent cockpit system deliveries.
The transaction is expected to be funded through a mix of approximately 70% syndicated bank loans from Chinese commercial banks on market terms with a 10-year maturity and approximately 30% from internal sources, including the offset of certain existing loans to DreamSmart. Under the payment schedule, 30% of the consideration will be due within 30 days after signing, with the remaining 70% payable within 30 days after completion of the equity transfer. After closing, ECARX plans to provide the acquired entity with a RMB200 million capital injection to support operations.
Closing remains subject to standard conditions, including satisfactory financial, legal and technical due diligence, full intellectual property transfer, core talent retention, and no material adverse change events. Upon completion, ECARX plans to operate Flyme as an independent software division while preserving R&D continuity and supporting existing customers. Existing operators of Flyme OS will continue receiving updates for the foreseeable future, with user data remaining under each operator’s ownership.
KEY QUOTE:
“Securing the rights to the full Flyme software stack is a defining moment for ECARX’s software-defined vehicle vision. This acquisition aligns our hardware and software roadmaps, and delivers a proprietary end-to-end operating system to sharpen our competitive positioning with global OEMs. Flyme’s proven cross-device ecosystem and proven mass-production footprint will unlock substantial sustainable new revenue streams through software licensing, integration services and connected car ecosystem monetization.”
Ziyu Shen, Founder and CEO of ECARX Holdings Inc.
