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
Advocate envisions Plexpod ‘art village’ rebuilding KC culture at the intersection of art, business
An arts advocate in Kansas City hopes to partner with one of the metro’s leading community coworking spaces to create a haven for nearly 1,300 art entrepreneurs. GUILDit announced Thursday plans to develop an art village within Plexpod Westport Commons — featuring coworking, studios, a theater, and gallery — with a goal to rebuild art…
Legacy-filled eclair shop launches with crowds, pastry case lined with custom, unexpected treats
Chef Erin Luttrell recalls tales of lines out the door and around the block at her great-grandparents’ bakery in the 1920s — the inspiration behind her newly opened sweets shop on the historic Independence Square. “During the grain strike, people couldn’t get flour or bread or products to bake at home for their families, so they…
BLK + BRWN debuts KC’s first smart bookstore with a twist: ‘I wanted to be as Black as possible’
Kansas City’s newest Black woman-owned, brick-and-mortar bookstore in Midtown has opened its doors, but customers shouldn’t judge the operation by its cover, owner Cori Smith said, revealing an additional first for the metro that has heads and pages turning. “There’s a technological aspect paired with each book,” explained Smith, owner of BLK + BRWN — Kansas…
Why KCRise Fund chose a Lee’s Summit-built criminal justice smartphone app for its first lead investment
A Kansas City startup’s smartphone-enabled alternative to ankle monitors taps into a huge courts and corrections market — with the potential for tremendous cost savings and societal impact, said Darcy Howe. And that docket of benefits presents a unique opportunity for KCRise Fund, which this week announced its lead investment in Lee’s Summit-based eHawk, added…