Zendesk to acquire Australian AWS partner Local Measure

Customer service software company Zendesk has signed an agreement to acquire Local Measure, an Australian provider of CCaaS and advanced voice solutions.

Zendesk intends to use the acquisition to accelerate its expansion into larger, more complex service environments, enhance its AI voice capabilities and strengthen its integration with Amazon Connect, AWS’ AI-powered, cloud contact centre solution.

Local Measure’s technology enables businesses to implement call routing, leverage AI-powered automation and unify inbound service and outbound sales and marketing efforts. 

Local Measure signed a multi-year strategic collaboration agreement with AWS towards the end of 2022, with CEO Jonathan Barouch telling the audience at that year’s AWS re:Invent event that it had grown revenue 500 percent year on year, in part due to the benefits for customers of the company’s Amazon Connect-based Engage contact centre solution.

“From an AWS Partner Network perspective, the really cool thing is we've leveraged a number of AWS’ programs to really accelerate that journey,” he said.

Zendesk CEO Tom Eggemeier said by acquiring Local Measure, the company is fast-tracking its ability to deliver a fully integrated, AI-powered voice solution.

“This move positions Zendesk to lead in the next generation of AI-powered service,” he said.

Barouch said that Local Measure has worked closely with Zendesk as a strategic partner and this next step means faster deployment, lower complexity, and cloud-native innovation.

“Together, we can bring customers the best of both worlds - Zendesk’s AI-driven service solutions and Local Measure’s expertise in voice technology and contact centres,” he said.

The proposed acquisition is subject to the satisfaction of customary conditions, including Local Measure's shareholder approval and necessary regulatory and Australian Court approvals.

The transaction is currently expected to close in May 2025.