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
$500K investment round feeds GiftAMeal’s hunger for expansion deeper into KC market
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. A…
Mr. K winner: Charlie Hustle wears heart on its sleeve as it accepts Small Biz of the Year honor
Civic pride continues to pay off for Kansas City-stitched Charlie Hustle, winner of the Greater Kansas City Chamber of Commerce’s 2021 Mr. K Small Business of the Year Award. Chase McAnulty, founder and CEO, accepted the coveted award Thursday afternoon during a KC Chamber-hosted luncheon — a successful end to the vintage-inspired apparel company’s third run at…
KC’s premier queer sports league nearly doubles in enrollment; focuses on uniting diverse LGBTQ+ community
Athletics has not always been a space where Jared Horman felt comfortable, he shared; but through Stonewall Sports, he discovered a way to genuinely enjoy games while connecting with other queer individuals and allies. “We get to kind of reclaim this thing that was terrifying for us as children,” said Horman, who was first introduced…
Sneak peek: Foxtrot Studio rebrands, reopening in KCK with more space and a caffeinated twist
With the COVID-19 pandemic affecting in-person retailers across the globe, Jordan Fox found himself compelled to take a step back and return to the roots of his passion — creating quality products by hand, he shared. “Foxtrot has always been very experience-driven. The feeling you have when you come into the space, coupled with the…