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
West Coast accelerator for women taps second wave of Kansas City tech founder talent
Kansas City is in the pipeline now, as the FourthWave Accelerator for women in tech recently selected a local founder for its cohort for the second consecutive year. After her own valuable experience with the accelerator in 2021, Carlanda McKinney, founder of Bodify, encouraged her fellow Pipeline fellow Terri Foudray, founder and CEO of ConvIOT,…
After exit: How Rx Savings Solutions’ $875M sale could mean opportunity for KC (even if details aren’t yet clear)
The years after a headline-grabbing acquisition can mean a “jump ball” for the ecosystem where the startup was grown, said Jeff Hornsby, acknowledging the various outcomes ahead when a hometown company gets new owners. Possibilities range from massive community reinvestment to staffing reductions and all-out relocation, though such moves aren’t mutually exclusive. “They may say…
NFL Draft wants diverse vendors for ‘largest event in the history of our city’; Here’s how to apply
When the NFL Draft comes to Kansas City in April, diverse local businesses will share center stage with the next generation of football players. The NFL Business Connect program is an initiative that seeks to link up to 100 local, diverse businesses with large event experience to contracting opportunities related to the 2023 NFL Draft,…
These brothers brought artisan Mexican designs to the streets of KC; now Pancho’s Blanket is opening a Crossroads shop
A handmade Mexican garment company led by brothers Jonathan and Joseph Garvey is quickly making the leap from First Friday pop up to Crossroads storefront — announcing the debut of a permanent home for the shop next week. Pancho’s Blanket — which partners with artisans in Tlaxcala, Mexico, to design and make wool jackets, blankets,…