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
Plexpod Westport Commons exhumes obscured mural of Kansas City
For an update on this piece, click here. Amid the dust and drilling at the yet-to-be-open Plexpod Westport Commons is a little-known artistic gem for Kansas City. At the heart of a project that marries history and innovation, the colossal coworking facility that was formerly Westport Junior High features a vibrant — albeit deteriorating —…
GUILDit feeds starving artists with tools to monetize their crafts
If good entrepreneurs are money-motivated, great ones know that it’s going to take more than that to be successful. In contrast, artists oftentimes develop a “love-hate relationship” with money. As anyone who has seen a “starving artists” moving van can attest, an artist’s passion doesn’t always lead to food on the table. For artists whose…
Kansas City streetcar app update arrives with roaring ridership
Has the popularity of the Kansas City Royals found its match with the Kansas City streetcar? No — probably not. But if you live in or around the City of Fountains, you probably know that its new downtown streetcar is quite popular. Since opening day, the streetcar has carried a total more than 645,000 passengers…
Fund me, KC: Pawns and Pints launching board game bar in Crossroads
Startland News is continuing its segment to highlight area entrepreneurs’ efforts to accelerate their businesses. This is an opportunity for entrepreneurs — like Pawns and Pints co-founder Edward Schmalz — to share their stories to gain a little help from their supporters. Back Pawns and Pints’ Kickstarter here. Who are you? My name is Edward…