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
UMKC pitch competition brings validating relief, cash prizes for emerging founders with big ideas
A popular UMKC pitch competition awarded more than $80,000 in cash prizes to student and full-time entrepreneurs Friday — validating new ideas and emerging ventures alike. “I never saw anything like this when I was in college,” said Dr. Brandy Archie, founder of AskSAMIE, who competed in a category especially for established startups at the University…
Showcase showdown: KC Chamber rallies ‘Mr. K competitors, but small biz owners say it feels more like family
The husband-wife duo behind Kansas City-based Shark OFF appreciate the local entrepreneurial ecosystem so much that they actually list it as one of their startup’s co-founders, Geoff Geist shared. “We would not exist if it weren’t for this community,” said Geist, the co-founder and COO of Shark OFF, which offers shark repellent bracelets that are…
These ‘Urban Heroes’ are helping evolve downtown KC; here’s why they’re on the right path
In a prelude to today’s celebration of downtown Kansas City’s evolution and momentum, four “urban heroes” were honored Thursday for their passionate work to make downtown a more vibrant place to live, work, and play, organizers said. Winners of the “Urban Hero Awards” ranged from honorees on the east side to the Crossroads and the…
Honey bunches of joy: How this Raytown bee farm landed its blooming business model
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. Erik and Rachael Messner’s home on an acre in south Kansas City gave…