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Zendesk to Acquire Local Measure, Expanding AI-Powered Voice

1. Zendesk acquires Local Measure to boost AI voice and CCaaS capabilities. The deal enhances enterprise service offerings. 2. The acquisition strengthens integration with AWS's Amazon Connect. It lowers customer service costs. 3. Local Measure’s technology optimizes call routing and automation for complex service environments. It supports real-time service insights. 4. The deal is subject to regulatory and shareholder approvals. Closing is expected in May 2025.

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FAQ

Why Bullish?

The acquisition is likely to drive future revenue by enhancing Zendesk's AI and voice solutions, similar to past transformative tech deals where strategic M&A boosted market share and investor confidence.

How important is it?

This move deepens Zendesk's enterprise capabilities and expands its market reach, though closing conditions pose execution risks.

Why Long Term?

The integration with AWS and advanced voice capabilities will take time to fully materialize, driving sustainable growth over the long term rather than immediate price moves.

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Proposed Acquisition Strengthens Enterprise CX Capabilities and Deepens Collaboration with Amazon Web Services (AWS) , /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 ZendeskZendesk 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. SOURCE Zendesk, Inc. WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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