ECARX’s $266 million Flyme deal: a high-priced bet yet to be proven

On Monday, Nasdaq-listed ECARX announced a full acquisition of Flyme’s software business from Xingji Meizu for RMB 1.8 billion ($266 million). The deal is structured through Hubei Qiguang Technology, a newly established entity spun off from Xingji Meizu, and includes the Flyme Auto smart cockpit operating system, the cross-device Flyme OS, related intellectual property, R&D teams, and existing automaker contracts. The RMB 1.8 billion price tag is far from cheap.