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
Eliminate the wait: JoCo-based DashNow offers diners mobile pay, check-splitting tech
Joseph Layne was tired of waiting. Seated at a busy restaurant, he stirred the mental ingredients for DashNow, a mobile-based service allowing diners to pay-and-go without waiting on a server to swipe a credit card or make change. “I realized I had been sitting there 10 minutes [waiting for the bill], while there was a…
War-torn Myanmar to North KC: Documentary gives taste of immigrant entrepreneur’s refugee journey
Kansas City’s culture is increasingly shifting to include and highlight immigrant entrepreneurship, said Danielle Lehman, though the true impact is still largely unappreciated. “I think there’s a disconnect between people who are enjoying the food [from immigrant-owned restaurants] and you’ll see a picture on instagram, but they never get to know the people that make…
Baiting the sharks: How much on-the-spot funding did founders catch at Pure Pitch Rally?
A diverse group of entrepreneurs took home $43,000 in cash prizes from Tuesday’s Pure Pitch Rally at The American restaurant. Emulating the popular TV show “Shark Tank,” about 45 investors — or “land sharks” — evaluated presentations from eight Kansas City tech startups and donated $1,000 to one of the companies at the conclusion of…
KC-frothed Omega Power Creamer wins supermarket sweep with Walmart distribution deal
Welcome the unexpected, Greg Blome said in reflection of the pitch that landed Omega Power Creamer a supermarket sweep: a 224-store distribution deal with Walmart. “[Walmart] reached out to us and they were interested in carrying our products — or at least in us pitching them — and we were already selling on Walmart.com ……