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
KCultivator: Plexpod founder Gerald Smith on Internet trolls, anti-gravity machines, man crush
Editor’s note: KCultivators is a lighthearted profile series to highlight people who are meaningfully enriching Kansas City’s entrepreneurial ecosystem. Check out our features on innovation coach Diana Kander, Victor & Penny’s Erin McGrane, SEED Law’s Adrienne Haynes, Code Koalas’ Robert Manigold, Prep-KC CEO Susan Wally and community builder Donald Carter. Plexpod is more than a shared…
LaunchKC $100K winner Cambrian Tech taking simple idea to new reality
After winning LaunchKC’s grand prize — $100,000 — Cambrian Tech has its virtual eyes on another prize: total interior home transformation. “The goal is to open your phone, walk around and visualize any project you may consider doing,” co-founder Joel Teply said. “From walls, countertops, backsplashes, flooring, cabinetry, appliances, hardware and landscaping.” DIY tech presents…
Techstars Spotlight: Somatic Labs’ sees freedom from distraction in touch tech
Somatic Labs is designing a technology for a future without screens, founder Shantanu Bala said. Imagine this: You’re driving in an unfamiliar neighborhood and instead of needing to look at your phone for directions, your wearable device uses physical sensations to direct you to your destination, keeping your eyes on the road. Or maybe you’re…
Code for Kansas City hacking into fifth year; more civic hackers needed
After five years hacking, Code for Kansas City is expanding its reach with new projects and avenues for using the brigade’s coding and technology skills to identify and match problems in the community with potential solutions. A fifth annual hackathon event this weekend — the National Day of Civic Hacking or HackKC — illustrates the…