Zendesk to Acquire Local Measure, Expanding AI-Powered Voice

Rhea-AI Summary

Zendesk has announced a definitive agreement to acquire Local Measure, a leading CCaaS and advanced voice solutions provider. The acquisition aims to enhance Zendesk's AI voice capabilities and strengthen its integration with Amazon Connect, AWS's cloud contact center solution.

Local Measure's technology specializes in high-volume service environments, offering sophisticated call routing, AI-powered automation, unified inbound service and outbound sales capabilities, and real-time service quality insights. The acquisition will accelerate Zendesk's expansion into complex service environments and position it as a key provider of AI-driven service solutions.

The deal reinforces Zendesk's collaboration with AWS and is expected to close in May 2025, subject to Local Measure's shareholder approval and regulatory and Australian Court approvals.

Positive

• Strategic acquisition enhances AI voice capabilities and complex service solutions
• Strengthens partnership with AWS and integration with Amazon Connect
• Expands into larger, more complex service environments
• Adds sophisticated call routing and AI-powered automation capabilities

Negative

• None.

Insights

Strategic Technology Analyst

This strategic acquisition marks a significant transformation in Zendesk's enterprise service capabilities, particularly in the rapidly evolving AI-powered voice solutions market. The integration of Local Measure's technology addresses three critical market dynamics:

1. Enterprise-Scale Enhancement
Local Measure's expertise in high-volume, complex service environments will enable Zendesk to compete more effectively in the enterprise segment, traditionally dominated by legacy providers. The technology stack's ability to handle sophisticated call routing and unify inbound service with outbound operations positions Zendesk to capture larger enterprise contracts.

2. AWS Strategic Alliance
The deeper integration with Amazon Connect represents a powerful competitive advantage. This three-way technological synergy (Zendesk-Local Measure-AWS) creates a formidable cloud-native solution that can significantly reduce implementation complexity and total cost of ownership for enterprises. The AWS partnership also provides Zendesk with access to advanced AI capabilities and global scale.

3. Market Timing and AI Innovation
The acquisition's timing aligns with the accelerating shift toward AI-powered customer service solutions. Local Measure's integration will enable Zendesk to offer more sophisticated automation and real-time insights, critical capabilities as businesses seek to balance service quality with operational efficiency. The combined solution's ability to leverage AI for both voice and digital channels positions Zendesk at the forefront of the industry's evolution.

The transaction's structure as an Australian scheme of arrangement, with an expected closing in May 2025, suggests a well-planned integration approach. The regulatory approval process appears straightforward, though shareholders will need to approve the transaction. This acquisition could significantly enhance Zendesk's competitive position against both traditional contact center providers and newer cloud-native competitors, while accelerating its enterprise market penetration.

Proposed Acquisition Strengthens Enterprise CX Capabilities and Deepens Collaboration with Amazon Web Services (AWS)

SAN FRANCISCO, Feb. 24, 2025 /PRNewswire/ -- Zendesk, a global leader in AI-powered service, today announced that it has signed a definitive agreement to acquire Local Measure, a leading provider of CCaaS and advanced voice solutions and a long-time AWS partner. This acquisition accelerates Zendesk's expansion into larger, more complex service environments, enhances its AI voice capabilities, and strengthens its integration with Amazon Connect, AWS's enterprise-ready, AI-powered, cloud contact center solution that helps companies deliver superior customer service at a lower cost.

"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," said Tom Eggemeier, CEO of Zendesk. "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's technology is built for high-volume, complex service environments. It enables businesses to implement sophisticated call routing, leverage AI-powered automation, unify inbound service and outbound sales and marketing efforts, and provide real-time insights that improve service quality.

"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 Center providers," said Jonathan Barouch, CEO of Local Measure. "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 centers."

This acquisition also strengthens Zendesk's collaboration with AWS, reinforcing its position as a key provider of AI-driven service solutions. Local Measure's deep expertise in voice and CCaaS combined with its seamless integration with the AI capabilities of Amazon Connect, will enable Zendesk to deliver more advanced automation, smarter agent assist tools, and greater flexibility and scalability for companies managing large-scale service operations.

"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," said Colleen Aubrey, senior vice president of AWS. "We are excited to work with Zendesk and Local Measure to unlock new opportunities for organizations to benefit from Amazon Connect helping them improve customer experience and operate faster, smarter, and more efficiently."

The proposed acquisition is to be implemented via a scheme of arrangement under Australian law and its closing is subject to the satisfaction of customary conditions precedent in transactions of this type, including Local Measure's shareholder approval and necessary regulatory and Australian Court approvals. The transaction is currently expected to close in May 2025.

About Zendesk
Zendesk powers exceptional service for every person on the planet. As the leader in AI-powered service, we help businesses deliver faster, smarter, and more personal customer and employee experiences. Our platform is purpose-built for service - combining AI agents, automation, and human insight to make every interaction seamless. We design our technology to enhance service, making it more intuitive, responsive, and effective. Easy to use, easy to scale, and designed for immediate impact, Zendesk helps companies strengthen relationships, improve efficiency, and grow. Learn more at www.zendesk.com.

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SOURCE Zendesk, Inc.

FAQ

When is Zendesk's acquisition of Local Measure expected to close?

The acquisition is expected to close in May 2025, subject to Local Measure's shareholder approval and regulatory and Australian Court approvals.

How will the Local Measure acquisition enhance Zendesk's capabilities?

The acquisition will enhance Zendesk's AI voice capabilities, add sophisticated call routing, enable AI-powered automation, and strengthen integration with Amazon Connect for improved customer service solutions.

What are the key features of Local Measure's technology that Zendesk is acquiring?

Local Measure's technology offers sophisticated call routing, AI-powered automation, unified inbound service and outbound sales capabilities, and real-time insights for service quality improvement.

How does the Local Measure acquisition affect Zendesk's relationship with AWS?

The acquisition strengthens Zendesk's collaboration with AWS and reinforces its position as a key provider of AI-driven service solutions integrated with Amazon Connect.

What regulatory approvals are required for Zendesk's acquisition of Local Measure?

The acquisition requires Local Measure's shareholder approval, regulatory approvals, and Australian Court approvals as it's being implemented via a scheme of arrangement under Australian law.