ECARX Holdings has entered a definitive agreement to acquire the Flyme software business from DreamSmart Group for CN¥1.8bn (US$266m), comprising Flyme Auto, an in-vehicle cockpit operating system (OS), and cross-device Flyme OS. The deal expands a preliminary plan from April 2026 and gives ECARX vertical control over the software layer in vehicles that have traditionally relied on third-party OS solutions.

Flyme Auto OS is already deployed in more than two million production vehicles across multiple OEM partners, while Flyme OS draws on more than 15 years of research and development experience across vehicles, smartphones and smart wearables. The transaction, structured as a carve-out from DreamSmart, will be funded approximately 70% by syndicated bank loans with a 10-year maturity and 30% from internal sources, with closing subject to standard preconditions.

In a statement, Ziyu Shen, Founder and Chief Executive of ECARX Holdings, said: “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 monetisation.”

Source: ECARX