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
Illness forecaster Sickweather lands local investor, opening KC office
As part of a recent investment round, Sickweather will be returning to familiar stomping grounds to open a Kansas City office. A graduate of the 2014 Techstars-led Sprint Accelerator, Sickweather raised a seed round of an undisclosed value to accelerate sales of its tech that forecasts and maps illnesses for consumers and enterprises. “We’re thrilled…
Entrepreneurial card game Idea Jab spurs creativity in students, startups
Editor’s note: Startland News is continuing its Fund Me, KC segment to highlight area entrepreneurs’ efforts to accelerate their businesses. This is an opportunity for entrepreneurs — like Idea Jab co-founders Matt Callegari and Alex Laughlin — to share their stories to gain a little help from their supporters. Back Idea Jab here. Who are…
MTC gifts $2.6M to 10 Missouri tech firms, including one from KC
The Missouri Technology Corporation is making the holidays extra special for 10 Show Me State startups. With an aim to grow the state’s tech and bioscience sectors, the MTC announced that it approved $2.6 million in co-investment awards to 10 firms, including $225,000 to Kansas City-based SquareOffs. Founded in 2012 by Jeff Rohr, SquareOffs created…
Ag venture group TechAccel invests $250K in research partnership
A new partnership will advance agricultural innovation in the state of Missouri. TechAccel, a Kansas City-based technology and venture development firm, recently announced it will work with the Donald Danforth Plant Science Center, a St. Louis-based nonprofit research institute. TechAccel will provide $250,000 in grants to the Danforth Center to help it demonstrate proof of…