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
Healium partners with T-Mobile, transporting veterans to DC memorials via virtual Honor Flight
Veterans living in rural America can experience the sights and sounds of the nation’s war memorials in Washington D.C. thanks to a Kansas City-area startup’s virtual reality technology, powered by T‑Mobile 5G. “We are losing our World War II veterans at a rate of hundreds a day, and sadly many may not live long enough…
Watch: Troost Village duo go behind the scenes of four-year development in historic East KC neighborhood
Editor’s note: The following story includes the first video in a four-part series taking a look under the hard hats at the Troost Village development, a $162 million project on Troost Avenue, the city’s longtime racial dividing line. Videos in this series are expected to debut on Startland News as the project unfolds. The finished…
KC’s long-running online indie music magazine just debuted in print; why its founder saved advertising for the black-and-white page
Flashy digital ads and gimmicky marketing schemes aren’t telling the stories (or singing the praises) of artists who run counter to Kansas City’s mainstream, said Aaron Rhodes, founder of a niche music magazine newly hitting the streets this spring. Readers shouldn’t be fooled, Rhodes said. His underground approach to ad sales for Shuttlecock Music Magazine…
Leah Hermida brought coffee home to KCK; her Windmill KC cafe already needs more space
In the shadow of the Kansas City skyline, new entrepreneurial energy is brewing in Wyandotte County, the childhood home of Leah Hermida. “I knew the community really well,” Hermida said from her pandemic-opened, Turner-based coffee shop, The Windmill KC, noting she grew up in the city before eventually relocating to Overland Park. “I worked locally…