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
Pipeline opens application for 2023 fellowship, Pathfinder; boosts its own storytelling
Midwest entrepreneurs deserve the resources they need to scale into high-growth ventures, said Melissa Vincent, announcing the launch this week of applications for Pipeline’s latest fellowship and Pathfinder program for overlooked founders. Tapping into its network of more than 180 entrepreneurs who have generated over $2.2 billion in revenues, Pipeline’s support system ranges from intense…
2022 Kansas City’s VC-Backed Companies Report
The metro’s field of venture capital-backed companies is getting more crowded — their payrolls swelling with new employees — amid a bounce-back from the global pandemic and new signals of Kansas City’s momentum, according to data in a new report from Startland News. The 2022 Kansas City Venture Capital-Backed Companies Report provides an updated snapshot into…
Sicilian legacy meats its match: Why this rising star on KC’s food scene was DiCapo’s pick to take over family pizzeria after nearly 100-year run
As a teenager working in downtown Kansas City in the 1990s, Theresa Santos found herself spending her breaks and spare time at the Italian Gardens restaurant on 12th and Baltimore, she recalled. Growing up in New York City and infatuated with Italian culture and food, Santos quickly became friends with the staff — then the…
You shouldn’t have to drive through hell to find a car, founder says; Startup brings concierge service to online auto customers
Not all car buyers want to be in the driver’s seat — especially when attempting to navigate a disconnected roadmap of dealer-focused online marketplaces, said Eric Westphal. “Years ago, when I was looking for a car, I knew what I wanted and I couldn’t find it locally,” said Westphal, describing the inspiration behind Overland Park-based…