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
Their one-night concert event boosts Band of Angels; Why this duo turned up the volume for fifth year on stage
Music connects community in ways other mediums cannot, said Amber Giangregorio. “Life can be so serious sometimes, so it’s good to take a step back and have some fun. On Stage with SIS is all about having fun, while also supporting a good cause. It’s a time for our clients and community to get to…
Chef behind The Prospect KC selected for accelerator focused on employment, social impact
An emerging Kansas City culinary icon will help lead the way among socially-engaged entrepreneurs creating a more inclusive economy that helps overlooked individuals move workforce barriers to the back burner. Chef Shanita McAfee-Bryant is among 18 employment social enterprise leaders from across the country chosen by leading venture philanthropy REDF (the Roberts Enterprise Development Fund)…
Global capital network selects IoT startup as its first ‘Endeavor Entrepreneur’ candidate from KC
Endeavor Heartland, the Northwest Arkansas-based division of a global network built to support high-impact entrepreneurs, has officially made its first foray into the Kansas City market, the organization announced. Pepper, a full-stack Internet of Things (IoT) platform-as-a-service provider, in May became the inaugural company from the Kansas City region to join Endeavor’s entrepreneurial ecosystem. Shawn…
New CEO for KC Fashion Week; transition keeps an industry champion on the runway
A shift in leadership at Kansas City Fashion Week is expected to emphasize the brand’s commitment to showcasing and promoting local and national talent within the industry, its outgoing executive said. “The future of the fashion industry in Kansas City is in the best possible hands,” said co-founder and CEO Philip Willoughby, announcing the sale…