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
Former Drunken Fish space spinning coastal VIP remix with DJ Kygo’s Palm Tree Club KC
Palm Tree Club recently debuted in hot spots Orlando, Miami and Las Vegas. Now it’s coming to Kansas City. Described as a “global lifestyle, entertainment and hospitality platform” — think caviar martinis, A5 Wagyu dumplings, VIP lounges, premium bottle service, DJs and open-air rooftop — Palm Tree Club Kansas City plans a fall opening in…
Topeka’s new community-built innovation incubator turns soil; leaders eager to show the world what grows
TOPEKA — It’s not just about breaking new ground in the state’s capital, said Neal Spencer; the Link Innovation Labs project’s global reach serves as “a foundation for growth, impact, and the future of our great city.” “It’ll be a hub for ideas, connection and opportunity — a place where startups launch, collaborators spark, and…
Global startups plug into Topeka: How Kansas connections are powering their innovation
TOPEKA — Collaboration in the Midwest is just a call away, said Romaine Redman. It’s a reality that sets the region’s entrepreneurial ecosystem apart, he added, and a heartland trait that seeds Topeka’s Plug and Play accelerator with the potential for international impact. “I pick up the phone and I call someone, and they’re here…
No time to roll credits: Film tax incentives give Kansas City more screen time than ever
After Hallmark movie touchdown, TV and film crews are scoring big in Kansas City, official says With cameras rolling and spotlights shining, Kansas City is positioning itself as one of the Midwest’s most attractive film destinations, said Rachel Kephart, noting reinvigorated support from city hall and an effective mix of local and state incentives. Interest…