Ecarx acquires Flyme software for RMB 1.8 billion

• ECARX completed the acquisition of the Flyme software business portfolio for RMB 1.8 billion.
• The all-cash transaction utilized 10-year syndicated bank loans and internal sources for funding.
• The company stated that Flyme will operate independently to support its broader operating system strategy.

ECARX (NASDAQ:ECX) acquired the Flyme software business portfolio for RMB 1.8 billion to bring operating systems in-house.

The all-cash transaction secured Hubei Qiguang Technology, a software entity carved out from the DreamSmart Group.

The $266 million consideration compared favorably against an independent valuation of RMB 1.824 billion from May.

Acquisition funding comprised 70% syndicated bank loans with a 10-year maturity and 30% internal cash sources.

Following the announcement, ECARX's share price was down at $0.91.

The acquiring company will provide a RMB 200 million capital injection after closing to support operations.

Flyme will operate as an independent software division housing intellectual property, research teams, and automaker contracts.