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.
[pullquote]
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.
[/pullquote]
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
KC’s ‘Horn Doctor’ handcrafts jazz preservation, keeping soul, tradition alive on Vine Street
Across the historic intersection at Kansas City’s 12th and Vine streets, B.A.C. Musical Instruments operates as one of the few remaining American factories handcrafting professional brass instruments. “This is where all the musicians would hang out back in the day,” said founder Mike “Horn Doctor” Corrigan, gesturing toward the Paseo sunken garden beside his shop.…
Autotech startup revs after patent stall; signature tech removes emissions, waste from diesel logistics
Fresh fuel is pumping into NORDEF after the Kansas City autotech company finally received patent approval for its signature product, co-founder William Walls said, pushing the pedal on its mission to disrupt the automotive fluid industry. Four years after applying for a provisional patent for its technology to produce diesel exhaust fluid on-demand — and…
rOOTS KC grows into third location, planting shop in River Market ahead of World Cup
Initially setting its roots as a pop-up plant shop in 2020, Dee Ferguson’s leafy business has grown to three Kansas City locations. The secret is in the soil, she said, describing a strategy for cultivating customers through free, evergreen plant care support and “community-rooted spirit.” [pullquote] The name rOOTS comes from Dee Ferguson’s surname: Oots.…
Summer funding pushes CarePilot to team hires, AI accolades, healthtech product launch
Fresh off its summer capital infusion, a Kansas City-built AI startup that helps doctors focus on patients instead of administrative tasks is earning industry recognition and dropping another new product, said Joseph Tutera, sharing credit for the milestones with behind-the-scenes talent. “We have a young team and they don’t have the encumbrance of a prior…