ECARX to Acquire Full Flyme Software Business for USD 266 Million

ECARX Holdings, Inc. announced in a press release that it has entered into a definitive agreement to acquire the full Flyme software business from DreamSmart Group for approximately USD 266 million. The transaction covers Flyme Auto, an in-vehicle operating system, and Flyme OS, a cross-device platform used in more than two million vehicles.

The acquisition will be executed through the purchase of 100 percent equity in a new entity carved out from DreamSmart Group, Hubei Qiguang Technology Co., Ltd. The entity will take ownership of all Flyme intellectual property, research and development teams, engineering resources, and customer contracts within six months of closing. The deal will be funded through a mix of 70 percent syndicated bank loans and 30 percent internal sources, with payment scheduled in two phases.

Flyme OS has been developed over 15 years and supports multiple devices including smartphones, vehicles, and wearables. The platform has achieved profitability in 2026 through revenue from software licensing and custom development. After completion, ECARX will operate Flyme as an independent division and plans to inject RMB200 million to support ongoing operations.

The acquisition expands ECARX’s proprietary software stack to include full operating system capabilities across mobile and automotive ecosystems. The company expects the integration to enhance its position with global automotive manufacturers and strengthen its in-car software offerings.