Gasgoo Munich- ECARX Holdings announced on June 22 that it has signed a definitive agreement to acquire the Flyme software business in a transaction valued at 1.8 billion yuan (approximately $266 million). The acquisition will be completed through the purchase of Hubei Qiguang Technology Co., Ltd., a dedicated entity spun off by DreamSmart Group to hold the relevant assets. The deal includes two flagship software platforms: the Flyme Auto intelligent cockpit operating system and the cross-device Flyme operating system.
Image source: ECARX
The transaction brings into ECARX's portfolio one of China's most established software ecosystems. With more than 15 years of development history, Flyme OS has evolved into a multi-device platform spanning vehicles, smartphones, wearable devices, and other connected terminals. Its automotive counterpart, Flyme Auto, has emerged as one of China's largest intelligent cockpit operating systems by deployment scale.
Through partnerships with several major automakers, ECARX has already helped deploy Flyme Auto across more than 2 million mass-produced vehicles, providing the company with substantial experience in large-scale software integration and vehicle program delivery.
Following completion of the acquisition, ECARX will gain ownership of both Flyme Auto and Flyme OS, along with their associated intellectual property, engineering resources, development personnel, and production program infrastructure. The company expects the deal to significantly strengthen its position in the increasingly competitive intelligent cockpit software market.
Flyme's capabilities in areas such as multi-screen interaction and smartphone-to-vehicle connectivity are regarded as key assets. Combined with a software development and delivery framework that has already been validated through high-volume vehicle production programs, these capabilities are expected to enhance ECARX's ability to serve global automotive customers and support large-scale deployment projects.
Beyond its technology portfolio, Flyme has established several revenue-generating business lines, including software licensing, customized technology development, and intelligent cockpit solution delivery. The business became profitable in 2026, a milestone that ECARX cited as evidence of the platform's commercial viability and long-term growth prospects.
The acquisition comes as automakers worldwide intensify competition around software-defined vehicles and digital cockpit experiences. Native automotive operating systems are increasingly viewed as strategic assets, enabling manufacturers to differentiate user experiences while supporting broader connected-vehicle ecosystems.
For ECARX, the addition of Flyme's full-stack operating system capabilities strengthens the company's integration of hardware and software technologies, potentially creating new opportunities as it expands its presence in the global smart mobility market.
To ensure business continuity, ECARX plans to establish a standalone software division dedicated to operating the Flyme business after the transaction closes. The company will also inject an additional 200 million yuan into Hubei Qiguang Technology to support ongoing product development and market expansion.
User data associated with existing Meizu products will remain under Meizu's ownership and management, with Meizu continuing responsibility for data operations and maintenance. ECARX said it will continue investing in upgrades across the Flyme software family, with particular emphasis on AI Agent-based capabilities. The company also indicated that existing Meizu smartphone users will receive a major software update later this year, while the next-generation Flyme Auto 3.0 vehicle operating system is scheduled for launch.
Looking ahead, ECARX plans to integrate Flyme's development resources into its broader smart mobility strategy. The company intends to further refine the connected smartphone-vehicle experience, expand the application of AI technologies across multiple device categories, and scale its cockpit software licensing business among global automakers.
The acquisition reflects a broader industry trend toward greater control over software platforms and digital ecosystems, as automotive technology suppliers seek to move beyond hardware and establish deeper roles in the next generation of intelligent vehicles.
