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Zendesk, a provider of artificial intelligence-powered customer support systems, is acquiring Sydney-based Local Measure in a deal that will expand the US-based company’s business into “larger and more complex environments”.
Local Measure, which was founded in 2014 by Jonathan Barouch and boasts a long-term partnership with AWS (Amazon Web Services), is a provider of CCaaS (contact centre as a service) and advanced voice solutions.
Local Measure operates extensively in the tourism and hospitality sector with the acquisition cementing a strategic partnership the company has also enjoyed with Zendesk for some time.
Zendesk says the acquisition of Local Measure will enhance its artificial intelligence (AI) voice capabilities while strengthening its integration with Amazon Connect, the AWS enterprise-ready, AI-powered, cloud contact-centre solution that helps companies deliver quality customer service at a lower cost.
Critical to the acquisition is Local Measure’s Engage platform which harnesses generative AI to empower “human and digital workers to elevate every customer interaction and maximise efficiency”.
“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,” says 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 centre providers,” says Barouch, the 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 centres.”
The 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, is expected to 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,” says Colleen Aubrey, senior vice president of AWS.
“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.”
Barouch founded Local Measure after seeing a “huge disconnect” in the travel, tourism, retail and hospitality industries where customer feedback and satisfaction was left in the hands of third-party review platforms instead of the companies that needed these insights to improve their service, revenue and customer loyalty.
The company initially partnered with companies such as Accor, Hard Rock Cafe, Virgin Hotels, Village Roadshow and Sea World, but when COVID struck, the company was forced to change course as many operators in the travel, retail and hospitality sector closed down during the pandemic.
That led to Local Measure looking for ways to help businesses navigate the new environment and, in mid-2020, the company launched a new SaaS (software as a service) product, a cloud contact centre solution called Engage for Amazon Connect. The platform is currently used by hotels, restaurants and cafes, among other industry sectors, to gauge guest experiences globally.
Zendesk at this stage has signed a definitive agreement to acquire Local Measure, financial details of which have not been disclosed.
The proposed acquisition is to be implemented via a scheme of arrangement under Australian law and its closing is subject to several conditions being met, including Local Measure shareholder approval and regulatory approvals.
Once these conditions are satisfied, the deal is expected to settle in May 2025.
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