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
Ho-ho-hometeam gifts: Your guide to KC’s best sports-inspired gifts (and how to get ’em before the holidays)
As a lifelong Kansas City Chiefs fan, Donnell Jamison stood by the team during the grim years when the playoffs were just a prayer and Chiefs shirts weren’t necessarily a hot holiday item, he shared. “I’m a die-hard Chiefs fan,” continued Jamison, owner of Deep Rooted, a KC streetwear brand with a brick and mortar…
Kauffman Foundation adds chief IT officer to CEO’s cabinet; role will use tech to open access, opportunities
A Kauffman Foundation tech veteran is expected to help align the organization’s technology priorities in support of its mission to reduce barriers in college access, workforce development, and entrepreneurship, said Dr. DeAngela Burns-Wallace. Donell Hammond, who joined the Ewing Marion Kauffman Foundation in 2018, has been named chief information technology officer and a member of…
Kansas secures $8.2M for digital equity plans; part of Biden’s ‘Internet for all’ initiative
New grant funding is expected to boost efforts to empower Kansans and Sunflower State communities with the digital tools and skills necessary to meaningfully benefit from high-speed Internet service. The U.S. Department of Commerce’s National Telecommunications and Information Administration (NTIA) on Wednesday announced funding pathways for Kansas, Mississippi, North Carolina, Pennsylvania, and Virginia, allowing the…
Made in KC crowns first-ever ‘Maker of the Year’ (plus the local-first retailer’s best new product)
Kansas City’s thriving maker community received a festive boost this holiday season as Made in KC unveiled its first-ever Made in KC Awards — a celebration of creativity and entrepreneurial spirit. The awards highlight more than a dozen standout makers and innovative products, with two big winners — KC New Maker of the Year and…