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
UMKC celebrates Maria Meyers for driving social entrepreneurship, ecosystem building in KC
Kansas City’s most tenacious advocate, Maria Meyers has built far more than a legacy for herself, proclaimed Mary Bloch. “I first met Maria Meyers in the mid-90s when we were both involved in the renovation of Union Station,” Bloch, civic leader and daughter-in-law of H&R Bloch founder Henry W. Bloch, said as she recognized Meyers,…
Entrepreneur of the Year: Michael Rea says building a startup takes a ‘strong stomach’
The road to startup success isn’t a clear path for anyone, acknowledged Michael Rea, and it takes a founder’s persistence to reach his or her desired destination. “Many people set out on an entrepreneurial journey, but few complete it,” Rea, founder and CEO of Rx Savings Solutions, told a crowd gathered Friday night for the…
Launch Health check-up: Spoke Health aims to give consumers value-based choices in care
Editor’s note: The following is part of a series of stories on the six cohort companies of the Launch Health Accelerator, powered by Nueterra Capital and sponsored by LaunchKC. Click here to read all the stories published in this series. Medical experiences are taxing — Spoke Health aims to cut the stress and give patients…
Launch Health check-up: Healium by StoryUp leverages new connections to stress its healing power
Editor’s note: The following is part of a series of stories on the six cohort companies of the Launch Health Accelerator, powered by Nueterra Capital and sponsored by LaunchKC. Click here to read all the stories published in this series. More than a million dollars in funding and a relationship with the founder of Tinder…