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
Grants competition returning with $55K for each winner; LaunchKC Liftoff applications open Aug. 14
LaunchKC leaders’ hopes and expectations for the popular competition’s grant-winning entrepreneurs go far beyond their final pitches, said Jim Erickson. “We want all of them to grow and prosper. We want, in 20 to 30 years, for us to be able to drive downtown and see skyscrapers with LaunchKC companies’ names on it, having driven…
Report: AI could displace 110,000 Kansas City jobs; here’s who might be most at risk
Editor’s note: This story was originally published by Kansas City PBS/Flatland, a member of the Kansas City Media Collective, which also includes Startland News, KCUR 89.3, American Public Square, The Kansas City Beacon, and Missouri Business Alert. Click here to read the original story. In 2020, when Terrence Wise learned the McDonald’s where he worked would be…
PHKC earns more state funding for 811 Retail Incubator; MTC boosting small biz
Another round of financial support from the Missouri Technology Corporation proves state economic development leaders understand that innovation also runs along main street, said Dan Smith. The Porter House KC — which just opened its 811 Retail Incubator in late July — is among seven entities just awarded a total of $1.8 million in Physical Infrastructure…
MTC just awarded $2.6M in investments; three KC tech startups earn state backing
As Advoteck works to bring its app to market later this year, an equity investment from the Missouri Technology Corporation is expected to help the Kansas City-based startup expand its reach nationwide in the fight against cyber crime. MTC on Tuesday announced $2.6 million in investments across seven Missouri companies — primarily focused on fostering…