ECARX Acquires Flyme Software Business for $266 Million

The acquisition involves carving out Hubei Qiguang Technology Co., Ltd. from the DreamSmart ecosystem, effectively bringing the entire Flyme intellectual property, engineering teams, and OEM contracts under the ECARX umbrella. This strategic pivot moves ECARX away from simple software integration toward a proprietary, end-to-end operating system capable of supporting multi-screen cabin interactions and seamless mobile-to-vehicle connectivity.

Ziyu Shen, Founder and CEO of ECARX, noted that the deal aligns the company’s hardware and software roadmaps, providing a sharpened edge when competing for global automotive contracts. The platform, built on 15 years of R&D, has already achieved profitability as of 2026, driven by licensing fees and custom cockpit development. ECARX plans to operate the acquisition as an independent software division to maintain R&D continuity for existing customers.

Financing for the transaction will rely on a mix of syndicated bank loans, covering 70% of the costs, and internal capital. Following the close, ECARX intends to inject an additional RMB 200 million into the new entity to stabilize operations and accelerate the development of integrated vehicle-to-mobile experiences. The deal remains subject to standard closing conditions, including the successful transfer of core IP and the retention of engineering talent.