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
‘Just dudes who dance and we’re not ashamed of it’: Twin influencers chassé their way to 100K+ TikTok followers
Paul and Luke Harwerth were born in “the-middle-of-nowhere” Nebraska, they said half-jokingly, yet the rise of YouTube in the early 2000s allowed them to fully explore their passions despite perceived geographic challenges. “We didn’t start dancing until I saw ‘High School Musical,’ and then I was like, ‘I want to do that!’” Luke shared, laughing…
Why an interactive digital business card could replace LinkedIn for startup, small business leaders
People want to get their foot in the door, Jess Phillips said, laying out her plan for a newly launched social media platform that opens professional connections with an insightful twist: an interactive digital business card offering data on who visits and why. Free of the awkward sales pitches and forced conversations that often come…
KC startup’s sale charges strategy as battery innovator plugs into century-old tech firm
A Massachusetts tech company’s strategy to advance into new clean energy markets is now electrified thanks to the completed acquisition of Grandview-based Spear Power Systems — a leader in next generation battery storage systems for demanding land, sea and air applications. “The acquisition of Spear Power Systems enables us to deliver more comprehensive energy storage…
Gary floral design blooms along ‘upside-down’ path as founder pivots from camper pop-up
Even when a side hustle grows organically, it still takes a creative mind to arrange a meaningful and worthwhile venture, said Jessi Levine, whose drive to pay homage to her father led to an eye-catching floral design business. The journey to her subscription floral service has been admittedly “upside down,” she said. From the outside,…