Two years after top KC startup’s sale, Zego (and its new owner) acquired for nearly $1B
June 18, 2021 | Startland News Staff
The company that acquired Kansas City-based Zego in 2019 — and liked the real estate tech startup’s brand so much it changed its own identity to match — has itself now been purchased by a global “powerhouse” in an all-cash transaction valued at $925 million.
Zego delivers its full value stack through a cloud native SaaS platform to enable seamless property management and best-in-class resident engagement and commerce experiences.
The company has significant scale with over 7,000 property management customers representing more than 11 million residential units in the United States utilizing its comprehensive real estate technology platform.
Through its integrated payments offering, Zego facilitates approximately $30 billion in payments annually in a market with a volume opportunity that exceeds $1 trillion.
Zego — formerly PayLease — announced the acquisition by Global Payments, a leading worldwide provider of payment technology and software solutions, June 10. (The 18-year-old San Diego company had rebranded to “Zego” about nine months after absorbing the exiting Kansas City startup, which was originally built in Kansas City by co-founders Adam Blake and Clay Coffman as a solution in the smart apartment space.)
“Today marks a monumental moment in Zego (Powered by PayLease) history as we embark on our next exciting chapter,” Zego representatives said in a press release after this month’s acquisition. “This transaction extends Global Payments’ leadership in software into the real estate vertical.”
Global Payments is headquartered in Georgia with nearly 24,000 employees worldwide.
The deal is not expected to disrupt services for current customers or residents, the company said, noting it pushes Zego closer to international expansion.
As a co-founder, Blake shifted into an advisor role with PayLease until December 2019 before taking time off to spend with his family and serve a handful of early stage companies in advisory roles.
Coffman served as director of product management for Zego (Powered by PayLease) until July 2020, moving into an advisor position with the company until December 2020.
“I think we did a good job showing outside investors there are venture-backable companies in KC,” Blake told Startland News in 2019. “We had a handful that invested in Kansas City for the first time.”
An inaugural Techstars Kansas City graduate founded as “CasaiQ,” the Kansas City-built Zego’s early investors ran the spectrum of the local and national investment scene: The KCRise Fund, Techstars Ventures, Zoloz CEO Toby Rush, and ShotTracker co-founder Davyeon Ross.
Featured Business
2021 Startups to Watch
stats here
Related Posts on Startland News
Pioneering KCI airport vote should help land top talent, startup leaders say
Capping a six-year journey fraught with turbulence, delays and political drama, voters overwhelmingly ratified plans to build a new $1.3 billion airport terminal, which would replace the existing Kansas City International Airport (KCI). “Kansas City has never been about being just mediocre,” said Michael Wilson, founder of luxury watch brand Niall and a frequent traveler…
WillCo Tech’s sale allows founder guilt-free $200K investment in smart grid startup
Selling a majority stake in his IT consulting firm will allow Kevin Williams to focus on and expand his startup venture, the Kansas City tech entrepreneur said. Although the exact amount was undisclosed, the acquisition by Ohio-based Metisentry earlier this month provided a big enough payoff to fund Williams’ and his wife’s future retirement, as…
After $2.95M round, corporate deal ensures word-of-mouth marketing for RiskGenius
RiskGenius’ $2.95 million series A extension funding round is worth more than its face value, said CEO Chris Cheatham. The round was led by QBE Ventures, an Australia-based firm known as being among the world’s top 20 insurance companies. In addition to the funds, QBE North America will be the first division to fully implement…
Likarda scaling up biotech research firm with $4M angel boost, new lab
An animal’s diabetes diagnosis comes with a heavy burden for the pet’s owners, Lisa Stehno-Bittel said. And it’s not just the cost of treatment, the president and co-founder of Likarda added. “Of those who will try twice-daily insulin injections, within a year, half of those have given up,” she said. “A lot of that is…