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
Vegan spell falls over West Bottoms restaurant as this trio’s plant-based potions ring in a new year
Every witch needs a coven, said Olive Cooke, Sylvia Metta and Kim Conyers; so they conjured a community in the West Bottoms to serve their vegan bites. Cauldron Collective — a plant-based, comfort food venture co-founded by self-proclaimed “cooking witches” Cooke, Metta and Conyers in January 2021 — made its mark in Kansas City through…
Topeka is building its own startup hub; a new group is pushing those left out from survival mode to creation
Startland News’ Startup Road Trip series explores innovative and uncommon ideas finding success in rural America and Midwestern startup hubs outside the Kansas City metro. This series is possible thanks to the Ewing Marion Kauffman Foundation, which leads a collaborative, nationwide effort to identify and remove large and small barriers to new business creation. The…
Trade to troubadour: Ben Chaverin finds his hook, but just sampling KC’s music scene might not be enough
Entering the job market amid a global pandemic isn’t ideal, Ben Chaverin admits, but its challenges can become opportunities for those creative (and willing) enough to turn adversity into a new playlist. “I’ve learned so much in the last couple of years — and grown so much as a human being,” Chaverin said, recalling his December…
Why the ‘best cold brew you’ve ever tasted’ (and it’s brewer) are found only in KC
Tucked in your neighborhood grocer’s cooler waits an otherworldly cold brew — the smoothest this side of the twilight zone. And it can only be found in Kansas City. For now. “I take my craft really seriously and I taste every batch. If it’s not right, it doesn’t go out. It’s really important to me…