Call centre software veteran Local Measure doubles valuation in $100 million sale to Zendesk

A Sydney call centre startup is being acquired by US global services platform Zendesk for a reported $100 million.

The deal for Local Measure comes 14 years after it was founded by CEO Jonathan Barouch.

Zendesk CEO Tom Eggemeier said the acquisition accelerates his company’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 centre.

“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,” he said.

“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 call centre software, Engage, enables businesses to implement sophisticated call routing, using AI, for inbound service and outbound sales and marketing calls.

The scaleup last raised $7.9 million in 2023 at a $50 million valuation, following on from $4.5m in 2017, taking on around $22 million in external capital since it kicked off in 2011.

The Zendesk deal doubles the value of the business in two years.

Barouch said they’d worked closely with Zendesk as a strategic partner.

“This next step means faster deployment, lower complexity, and cloud-native innovation making Zendesk a fresh alternative to legacy Contact Center providers,” he said.

“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 is subject to Australian competition and foreign merger and acquisition laws, as well as Local Measure’s shareholder approval and necessary regulatory and Australian Court approvals.

If all the ducks line up, the deal is expected to go through in May 2025.