Zendesk to acquire Local Measure, boosting AI-powered voice capabilities

Zendesk is set to acquire Australia-based Local Measure, a supplier of contact centre as a service (CCaaS) and advanced voice offerings in a bid to expand its footprint in more complex service environments, enhance its artificial intelligence (AI) voice capabilities and improve its integration with Amazon Connect.

“Voice is one of the most personal and powerful ways businesses connect with customers and employees and managing it at scale requires a solution that is both intelligent and adaptable,” said Tom Eggemeier, CEO of Zendesk.

The acquisition of Local Measure, he said, will speed up Zendesk’s delivery of “a fully integrated, AI-powered voice solution” that combines Zendesk’s platform with the flexibility and scalability of Amazon Connect. This, he added, will position Zendesk to “lead in the next generation of AI-powered service”.

Local Measure’s technology caters to high-volume, complex service environments. It offers sophisticated call routing, AI-powered automation, unified inbound and outbound communication management, and real-time insights for improved service quality.

It has also integrated generative AI capabilities into its platform, including AI assistants that help contact centre agents improve communications with customers, break down language barriers and resolve cases quickly.

Jonathan Barouch, CEO of Local Measure, an Amazon Web Services (AWS) partner, highlighted the existing partnership with Zendesk, noting that the acquisition will lead to faster deployment, reduced complexity and cloud-native innovation. He believes the combined offering presents a “fresh alternative to legacy contact centre providers”.

The acquisition is also expected to bolster Zendesk’s collaboration with AWS. By integrating Local Measure’s voice and CCaaS expertise with Amazon Connect’s AI capabilities, Zendesk aims to provide advanced automation, smarter agent assistance, and greater flexibility for large-scale service operations.

Colleen Aubrey, senior vice-president of AWS Solutions, said: “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,” she added.

The acquisition, structured as a scheme of arrangement under Australian law, is subject to customary closing conditions, including Local Measure shareholder approval and regulatory clearances. It is expected to close in May 2025.

In recent years, Zendesk has embarked on a broader strategy to integrate advanced AI capabilities into its customer experience platform. Prior to its intention to acquire Local Measure, it has acquired several complementary technologies, including quality assurance and workforce management capabilities, to enhance its AI-powered offerings.

In September 2024, it introduced an outcome-based pricing model for AI agents, where Zendesk customers will only pay for each successful query resolution handled by AI agents. If an AI agent is unable to fully address a query which has to be escalated to a human agent, the customer will not be charged.

Maureen Chong, Zendesk’s regional vice-president for Asia, said the move aims to provide tangible benefits for customers as they transition from traditional human agents to AI-powered customer service.