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
‘The people demand mustard’: This stained glass artist dipped into corn dogs (and hungry shoppers ate it up)
Startland News’ Startup Road Trip series explores innovative and uncommon ideas finding success in rural America and Midwestern startup hubs outside the Kansas City metro. LAWRENCE — Selling holiday shoppers on stained glass corn dogs was unexpectedly easy, said Darleen Schillaci; adding mustard and keeping up with buyers’ appetite, however, proved the meatiest challenge. The…
Skip shopping and shipping: Your guide to last-minute, KC-made gifts you can still get in stores
Forget naughty and nice: one Kansas City-pieced business has a puzzling present for each person on Santa’s “weird and mellow” list. Locals can still find them on KC-area store shelves — while they last. Birdie — a sister company to Stefanie and Tim Ekeren’s popular Kansas City Puzzle Company — packs each eye-catching box with…
One issue cuts across all political lines: How it could be the antidote to a divided America
Entrepreneurship is a way to unify the United States at a time with great political division, said Victor Hwang. “It’s an issue that cuts across party lines,” explained the founder and CEO of Right to Start. “And it’s something Americans really care about.” Hwang, previously an executive at the Ewing Marion Kauffman Foundation, recently published…
Small biz makers worry Trump tariffs could be ‘recipe for recession’; Economists, farmers share concerns about trade war
An enthusiastic smile spreads across Katie Mabry Van Dieren’s face as three small groups of new customers flow into her Brookside Plaza shop — a space filled as high as the Shop Local KC owner can reach with colorful, off-beat, and functional goods and gifts from Kansas City makers. “We smelled something wonderful from outside…