US-based medium-duty electric and hybrid vehicle maker Harbinger has acquired autonomous driving software firm Phantom AI.

Harbinger has also secured an advanced driver assistance systems (ADAS) licensing agreement with Germany’s ZF Group.

Financial terms of the deals were not disclosed.

The acquisition allows Harbinger to embed Phantom AI’s advanced driver-assistance capabilities into its medium-duty electric and hybrid vehicles from this year.

Planned functions include automatic emergency braking, adaptive cruise control and lane-keeping.

Harbinger said the move addresses demand from fleet customers for safety technologies that remain limited in the medium-duty vehicle segment.

Alongside the purchase, Harbinger has agreed to license Phantom AI’s computer-vision software to ZF Group’s passenger-car ADAS unit.

The arrangement is expected to establish a new software services revenue stream for Harbinger following the takeover.

Harbinger co-founder and CEO John Harris said: “We are combining Phantom AI’s computer vision with ZF’s global reach and leadership in automotive systems to unlock an entirely new revenue stream of software services and autonomy.

“At the same time, we are incorporating even more advanced driver assistance and safety features into our medium-duty vehicles, which is something our large Fortune 500 customers have been asking for.”

Phantom AI was co-founded by former Tesla ADAS engineer Hyunggi Cho and former Hyundai autonomous-driving engineer Chan Kyu Lee.

Its roughly 30 staff will continue operating from Mountain View, California.

The company specialises in Level 2 autonomy features, including automatic emergency braking and emergency lane support.

Level 2 autonomy, also known as partial automation, uses ADAS to manage both steering and speed control – handling acceleration and braking at the same time.

Harbinger said it plans to integrate Phantom AI’s software into its purpose-built electric medium-duty vehicle platform.

The platform already includes safety features such as backup cameras with dynamic trajectory, virtual bumpers, and acoustic vehicle alerting systems.

Before the transaction, Harbinger’s vehicles were designed to remain purchase-cost competitive with combustion-engine alternatives while lowering fleet operating expenses.

Phantom AI co-founder and CEO Hyunggi Cho added: “Thanks to this acquisition, we are able to deliver a more comprehensive, technology-forward solution that includes robust ADAS capabilities and telematics to the medium-duty vehicle segment and beyond. While these features are already expected in passenger vehicles, medium-duty fleets have historically been underserved.”