ECARX Holdings Inc. (ECX) said Monday it completed its acquisition of the Flyme software business, giving the automotive technology company full control of key operating system capabilities.

The transaction, first announced in June, includes Flyme Auto and Flyme OS.

ECARX acquired 100% of Hubei Qiguang Technology Co. Ltd., an entity carved out of DreamSmart Group to house the Flyme business.

Flyme Software Moves In-House

Flyme Auto is an in-vehicle cockpit operating system already deployed by ECARX in about 3.5 million production vehicles across several automakers.

Meanwhile, Flyme OS connects vehicles with smartphones and other smart devices. The platform is backed by more than 15 years of research, development and commercial deployment.

ECARX plans to operate Flyme as an independent software division. Existing Flyme OS operators will continue to receive updates, while user data will remain under each operator's ownership.

CEO Ziyu Shen said the acquisition strengthens ECARX's ability to combine its semiconductor, computing and software technologies into a more integrated platform.

The company expects the deal to improve product development and create additional opportunities in software licensing, integration services and connected-car technology.

Flyme will also complement ECARX's Cloudpeak cross-domain software platform.

ECARX Pays $266 Million

ECARX paid 1.8 billion Chinese yuan, or about $266 million, for the acquired business. That compares with an independent valuation of 1.824 billion yuan as of May 31.

The all-cash transaction was financed with roughly 70% syndicated bank loans from Chinese commercial banks and 30% internal funds. The loans carry a 10-year maturity.

ECARX also plans to inject 200 million yuan into the acquired company to support operations.

The business includes Flyme's key intellectual property, research teams, engineering resources, customer contracts and operating infrastructure.

ECARX technology is currently deployed in more than 12 million vehicles worldwide across 18 automakers and 28 vehicle brands.

ECX Price Action: ECARX Holdings shares were down 1.39% at $0.84 at the time of publication on Monday, according to market data.