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
‘I have to make it’: Fanny Ruiz de Chavez refused service to failure; 16 months later, she’s still cooking
Story and photos by Channa Steinmetz, Startland News | Video by Catherine Hoffman, Flatland Sitting in fear was quickly off the menu for Fanny Ruiz de Chavez — told less than two months after her Lee’s Summit restaurant’s 2020 grand opening that she’d need to close down because of COVID-19 restrictions, she recalled. “I…
How Zaarly’s ‘gruesome’ shutdown led to a $2.6M task for Bo Fishback (Hint: It began with a mysterious overseas email)
Two months after announcing “the final chapter” of Zaarly, the Kansas City startup’s founder and 12-member team have joined a fast-growing international tech company — bringing the overseas brand to the U.S. via Zaarly’s existing footprint and expertise. “There’s no other company in the world with more shared origin DNA to Zaarly,” Bo Fishback, founder…
Five KC startups find home, validation in Techstars 2021 class; Up next: new markets
Joining the latest class of Techstars Kansas City is expected to help startups like afloat scale what’s worked in Kansas City into other markets, said Sarah-Allen Preston, founder of a KC gift-sending app that connects users’ social circles, communities, and businesses. “Being selected for Techstars is a great validation for afloat’s momentum after a year…
Max Kaniger, Kanbe’s Markets named ‘changemaker’ by Triscuit, earning $50K grant
A Kansas City nonprofit leader is among the inaugural “changemakers” selected for a $50,000 grant as part of Triscuit’s $1 million commitment to its Missing Ingredients Project. Maxfield Kaniger, CEO and founder of Kanbe’s Markets, was announced for the honor Tuesday with funds expected to support Kanbe’s unique and innovative community-based micro market program, which…