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
KCRise Fund invests in PEQ and Dunami
The KCRise Fund announced two investments in area firms Thursday to round out its 2016. Launched in February in conjunction with the KC Rising economic initiative, the KCRise Fund joined ongoing investment rounds in tech firms PEQ and Dunami. Kansas City-based PEQ is an Internet of Things service enabler that created an operating system for…
Missouri job growth among the best in the U.S.
Missouri job growth among the best in the U.S. In 2016, the Show Me State gained 57,100 jobs — a figure that topped all 8 of Missouri’s neighboring states. In addition to job growth, Missouri’s unemployment rate decreased .4 percent during the past month, according to a recent report by the U.S. Bureau of Labor…
‘Nerds’ want to retool Kansas City nonprofits’ websites
‘Tis the season to help your fellow man — and their website. That seems to be the driving force behind a volunteer-led program to improve the digital presence of several Kansas City nonprofits. The Nerdery and its foundation will host the Overnight Website Challenge, which over the years has tapped hundreds of volunteers to complete…
Chris Brown: How to split equity in your startup
Editor’s note: Opinions expressed in this commentary are the author’s alone. This article is general in nature and does not constitute legal advice. Readers with legal questions should consult an attorney. When founding a new startup it is common to have disagreements over how much equity each founder should receive. In this post, we will…