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 unveils first-ever double cohort in bid to develop region’s next great serial entrepreneur
Twenty-five founders are entering the Pipeline network this week, Melissa Vincent said Thursday, revealing the newest additions to its elite fellowship, as well as the just-debuted Pathfinder cohort for earlier-stage, underserved entrepreneurs. “We were blown away by the response,” said Vincent, executive director of Pipeline, noting the fall 2021 recruiting period was the most vigorous…
10-year plan to create more ‘equitable downtown’ would remove interstates, make way for ballpark in city’s core
Editor’s note: The following story was originally published by CityScene KC, an online news source focused on Greater Downtown Kansas City. Click here to read the original story or here to sign up for the weekly CityScene KC email review. A strategic plan that encompasses neighborhoods more than a mile from the skyscrapers of its central business district and…
Kanbe’s Markets selected for $30K in marketing services from surging Crux KC team
Kanbe’s Markets is expected to harvest boosted visibility and functionality thanks to a newly announced donation of $30,000 in pro bono marketing services from one of Kansas City’s fastest-growing agencies. Crux KC selected the nonprofit for its annual “Crux for a Cause” initiative, which is expected to provide an entire year of services from a…
LaunchKC opens applications for new Social Venture Studio; five slots expected for cohort focused on KC
Entrepreneurs hoping to provide both social impact and return on investment are encouraged to apply for the inaugural cohort of LaunchKC’s Social Venture Studio — an effort focused on creating sustainable business models to tackle social, racial, or environmental issues. Click here to apply through March 30. The studio is seeking a diverse cohort of leaders,…