Zendesk strengthens AI customer service with Local Measure acquisition

Zendesk has announced a definitive agreement to acquire Local Measure, a leading provider of contact center as a service (CCaaS) and advanced voice technology. This acquisition is expected to significantly expand Zendesk’s AI-powered voice solutions while deepening its integration with Amazon Web Services (AWS). By incorporating Local Measure’s expertise, Zendesk aims to enhance customer service experiences, optimize large-scale enterprise operations, and strengthen its capabilities in AI-driven automation.

The acquisition aligns with Zendesk’s broader vision of creating intelligent, adaptable, and scalable customer engagement platforms. Local Measure’s technology will enable businesses to improve call routing, automate service interactions, and unify customer engagement strategies across multiple channels. This integration is also expected to enhance Zendesk’s collaboration with AWS by leveraging Amazon Connect, a cloud-based contact center solution that optimizes customer interactions with artificial intelligence.

Why Is Zendesk Investing in AI-Powered Voice Technology?

AI-powered voice technology has become a critical component of modern customer service, allowing businesses to handle complex interactions efficiently. As enterprises shift toward AI-driven automation, the demand for intelligent, scalable, and cost-effective voice solutions has surged. Zendesk’s acquisition of Local Measure underscores its commitment to advancing AI-powered customer service solutions by integrating intelligent voice automation into its existing platforms.

Zendesk CEO Tom Eggemeier highlighted the growing importance of voice as a medium for customer engagement. He stated that managing voice interactions at scale requires an intelligent and flexible solution. By acquiring Local Measure, Zendesk will be able to accelerate the development of a fully integrated, AI-powered voice platform that seamlessly combines its service capabilities with Amazon Connect’s scalability and security.

Local Measure’s technology is designed to support high-volume customer interactions, making it ideal for large enterprises seeking to enhance customer experience. The company’s expertise in AI-driven call routing, automation, and real-time analytics will allow Zendesk to offer a comprehensive voice solution tailored to modern customer service needs.

What Are the Key Benefits of This Acquisition for Zendesk?

The integration of Local Measure’s AI-powered voice solutions is expected to deliver several benefits to Zendesk and its enterprise clients. By enhancing its AI capabilities, Zendesk aims to offer more advanced automation, improve service efficiency, and provide businesses with smarter tools for customer engagement.

One of the primary advantages of this acquisition is the enhancement of Zendesk’s partnership with AWS. Local Measure’s seamless integration with Amazon Connect will enable Zendesk to expand its automation capabilities, providing businesses with AI-powered tools that optimize customer interactions. This move positions Zendesk as a leading alternative to traditional contact center providers, offering a more agile and scalable solution.

Jonathan Barouch, CEO of Local Measure, emphasized that the acquisition would enable faster deployment and reduced complexity for businesses. He noted that combining Zendesk’s AI-driven service platform with Local Measure’s expertise in voice technology would create a compelling alternative to legacy contact center solutions. The acquisition will allow companies to leverage AI-driven automation while maintaining the flexibility and security of cloud-based customer service solutions.

How Will This Acquisition Strengthen Zendesk’s Partnership with AWS?

Zendesk’s acquisition of Local Measure further solidifies its collaboration with AWS by enhancing its integration with Amazon Connect. As enterprises seek more advanced AI-driven service solutions, the ability to integrate seamlessly with cloud-native platforms has become increasingly important. This partnership will allow businesses to implement intelligent automation, leverage smarter agent-assist tools, and scale their customer service operations with greater efficiency.

Colleen Aubrey, senior vice president at AWS, noted that Amazon Connect plays a critical role in helping businesses solve complex customer service challenges. She emphasized that the integration of Zendesk and Local Measure’s technology would unlock new opportunities for organizations to enhance their customer engagement strategies. By leveraging AI-powered automation, businesses can streamline operations, reduce costs, and improve overall service quality.

The strengthened collaboration between Zendesk and AWS is expected to drive further innovation in AI-powered customer service solutions. With the growing adoption of AI-driven automation, companies are looking for intelligent, scalable solutions that can adapt to evolving customer needs. This acquisition positions Zendesk as a key player in the AI-powered service market, offering enterprises a next-generation solution for customer engagement.

What Are the Regulatory and Approval Requirements for This Acquisition?

The acquisition of Local Measure will be executed under a scheme of arrangement in accordance with Australian law. Before the transaction can proceed, it must receive approval from Local Measure’s shareholders, as well as the necessary regulatory and Australian Court approvals. These steps are standard in acquisitions of this nature and ensure that all legal and financial conditions are met.

The deal is expected to close by May 2025, provided that all required approvals are obtained. Once finalized, Zendesk will fully integrate Local Measure’s technology into its service platform, further enhancing its AI-powered voice capabilities and expanding its presence in the enterprise contact center market.

What Does This Acquisition Mean for the Future of AI-Powered Customer Service?

Zendesk’s acquisition of Local Measure represents a significant step forward in the evolution of AI-powered customer service. As businesses continue to adopt AI-driven automation, the demand for intelligent, adaptable, and scalable service solutions will only grow. By integrating Local Measure’s voice technology with its AI-powered platform, Zendesk is positioning itself at the forefront of this transformation.

This acquisition also signals a shift toward cloud-native, AI-powered customer engagement strategies. With the integration of Amazon Connect, Zendesk will be able to offer enterprises a more efficient, flexible, and cost-effective solution for managing customer interactions at scale. The move highlights the increasing role of AI in shaping the future of customer service, with automation, intelligent call routing, and real-time analytics becoming essential components of modern customer engagement.

As AI-powered voice technology continues to evolve, companies that invest in intelligent automation will have a competitive edge in delivering superior customer experiences. Zendesk’s acquisition of Local Measure reinforces its commitment to innovation in AI-powered service, setting the stage for the next generation of customer engagement solutions.