en.Wedoany.com Reported - ECARX Holdings Inc. (Nasdaq: ECX), a provider of intelligent vehicle computing and software solutions, announced the acquisition of the entire Flyme software business portfolio for 1.8 billion yuan (approximately $266 million), including the in-vehicle cockpit operating system Flyme Auto and the cross-device Flyme operating system. As of 2026, the Flyme Auto OS has been deployed in over 2 million production vehicles globally.
This acquisition expands on the preliminary acquisition plan announced in April 2026. After completing due diligence, ECARX decided to fully acquire the aforementioned software business. The acquisition will be executed by spinning off a new entity, Hubei Qiguang Technology Co., Ltd., from the DreamSmart Group, with 100% equity acquired. The transaction consideration includes 1.8 billion yuan for full equity purchase. The sellers include Wuhan Xingji Meizu Technology Co., Ltd., Zhuhai Meizu Technology Co., Ltd., and Hubei Xingji Meizu Group Co., Ltd.
The acquired entity will obtain ownership of the entire software business portfolio, including Flyme Auto and Flyme OS. These platforms provide end-to-end full-stack software infrastructure, covering multi-screen cockpit interaction, seamless mobile IoT vehicle connectivity, core middleware, user interface and user experience frameworks, and application development toolkits. Within six months after transaction closing, the acquired entity will own the relevant intellectual property, R&D team, engineering resources, customer contracts, and operational infrastructure.
An independent valuation determined the equity value of the acquired entity as of May 31, 2026, to be 1.824 billion yuan. According to management accounts, the software platform achieved profitability in 2026, with revenue growth driven by software licensing, custom development, and smart cockpit system delivery.
The global in-vehicle intelligent market is rapidly expanding, with automakers shifting from smartphone mirroring solutions to embedded native operating systems. The Flyme full-stack operating system enables ECARX to provide proprietary end-to-end software architecture to meet this growing demand. The transaction is expected to be financed by approximately 70% from a syndicated loan provided by Chinese commercial banks under market conditions with a 10-year term, and approximately 30% from internal resources, including offsetting part of existing loans to DreamSmart. Payment will be made in two phases: 30% of the consideration within 30 days after signing, and the remaining 70% within 30 days after equity transfer completion. After closing, ECARX will inject 200 million yuan into the acquired entity. Closing is subject to multiple standard conditions precedent, including satisfactory financial, legal, and technical due diligence, complete intellectual property transfer, core talent retention, and no material adverse change events.
ECARX Founder and CEO Ziyu Shen stated that obtaining full rights to the Flyme software stack is a key step in the company's software-defined vehicle vision. This acquisition will align hardware and software roadmaps, unlocking revenue streams through software licensing, integrated services, and vehicle-to-cloud ecosystem monetization. Upon completion, ECARX will operate Flyme as an independent software division, maintaining R&D continuity and ensuring a smooth transition for existing customers. Existing operators of Flyme OS will continue to receive updates, and ECARX and the Flyme team will jointly advance integrated vehicle-to-mobile intelligent experiences.
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