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
Startup synergy: Native Hemp Co opening retail store in former downtown MADE flagship store
A grand adventure awaits Kansas City-baked Native Hemp Co., as the cannabis company reaches new heights and sets up shop with its first retail location. “I have a family all across the world now and it’s been so much fun,” Rich Dunfield, founder of Native Hemp Co., said of the company’s trajectory and success ahead…
iShare Medical working with VA, Medicare, Medicaid to improve patient outcomes, reduce cost of care
Medical errors shouldn’t be among the leading causes of death in a country as developed as the United States, said Linda Van Horn, especially when failure to communicate critical information across platforms is to blame. “It’s unacceptable to make mistakes, just because the information is not readily available to the provider, the doctor or the…
Railroad remedy: Fishtech-backed app could bring added efficiency to local transit system
What started out as a joke between coworkers at Fishtech Group, could solve a community-wide pain point in Martin City — and beyond, explained Michael Wilson. “Every single day there’d be a train come by, blowing its horn, interrupting us on conference calls and they would also make a lot of people late for meetings,”…
Q&A: Startup life isn’t all risk-taking and sexy, big-name investors, Kelly Sievers says
Investing doesn’t just hinge a dollar amount, said Kelly Sievers. “It’s also about finding the right kind of funding for your business,” the Women’s Capital Connection managing director told 26 small business owners at a recent Kansas City SCORE mentoring event. Sievers, an entrepreneurial advisor for the Women’s Business Center, has owned, operated and sold…