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
2000 Vine: Brewed under pressure, KC’s first Black-owned brewery puts more than reputations on the vine
Editor’s note: This story is part of a series from Startland News highlighting entrepreneurs, businesses, and creators leading revitalization and redevelopment efforts in and around the historic 18th and Vine Jazz District. Click here to read additional stories from this series. A brewery under construction at 2000 Vine on Kansas City’s East Side comes from…
KC-built healthtech app announces pre-seed funding from former JE Dunn CEO
Funds from a new pre-seed investment will help commercialize the MyDigiRecords app, its founder said, announcing critical new backing from one of Kansas City living entrepreneurial legends. The health records app — which will enable consumers to directly manage their health records, like immunizations and prescription drugs — announced Thursday the undisclosed, but “sizable” funding…
Newly merged Cyderes boasts 63-percent growth rate, beating timeline, expectations
Editor’s note: Cyderes is a financial supporter of Startland News’ nonprofit newsroom. Merging two cybersecurity powerhouses was a monumental task unto itself, said Robert Herjavec, but the newly formed Cyderes has exceeded expectations and more than overcome the challenges associated with blending the strengths of Herjavec Group and Fishtech Group. “Not only is our merger…
2000 Vine: ‘KC doesn’t understand how dope this guy is’ — Painter blessed with a space (and style) of his own
Editor’s note: This story is part of a series from Startland News highlighting entrepreneurs, businesses, and creators leading revitalization and redevelopment efforts in and around the historic 18th and Vine Jazz District. Click here to read additional stories from this series. In an opportunity that “came out of nowhere,” Kansas City artist Warren “Stylez” Harvey…