Zendesk to acquire Local Measure, boosting AI voice services

Zendesk has announced its definitive agreement to acquire Local Measure, an Australian company known for providing Contact Centre as a Service (CCaaS) and advanced voice solutions.

The acquisition is aimed at enhancing Zendesk's capabilities in AI-powered voice services within larger and more complex service environments. This strategic move is set to bolster Zendesk's collaboration with Amazon Web Services (AWS) by integrating more closely with Amazon Connect, AWS's cloud contact centre solution.

Tom Eggemeier, CEO of Zendesk, commented on the acquisition by stating, "Voice is one of the most personal and powerful ways businesses connect with their customers and employees, and managing it at scale requires a solution that is both intelligent and adaptable. By acquiring Local Measure, we are fast-tracking our ability to deliver a fully integrated, AI-powered voice solution that combines the strength of Zendesk's platform with the flexibility, security, and scalability of Amazon Connect. This move positions Zendesk to lead in the next generation of AI-powered service."

Local Measure is reputed for its technology tailored to high-volume, complex service environments. The technology enables businesses to implement advanced call routing, use AI-powered automation, unify service and sales efforts, and gain real-time insights to improve service quality.

Reflecting on the acquisition, Jonathan Barouch, CEO of Local Measure, said, "We've worked closely with Zendesk as a strategic partner, and this next step means faster deployment, lower complexity, and cloud-native innovation making Zendesk a fresh alternative to legacy Contact Centre providers. Together, we can bring customers the best of both worlds - Zendesk's industry-leading AI-driven service solutions and Local Measure's deep expertise in voice technology and contact centres."

This acquisition is also significant in strengthening Zendesk's relationship with AWS. Colleen Aubrey, Senior Vice President of AWS Solutions, remarked, "At AWS, we are focused on helping customers solve complex challenges at scale, and Amazon Connect is a critical part of that because it brings enterprise-ready capabilities that are global and AI native. We are excited to work with Zendesk and Local Measure to unlock new opportunities for organisations to benefit from Amazon Connect helping them improve customer experience and operate faster, smarter, and more efficiently."

The transaction is structured to be completed under a scheme of arrangement in accordance with Australian law, pending customary conditions such as Local Measure's shareholder and regulatory approvals, as well as necessary consents from the Australian Court. The closing of the acquisition is anticipated to occur by May 2025.