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
Photos: Sprint Accelerator leaders salute former managing director at demo day
Gratitude powered down the sixth cohort of the Sprint and Dairy Farmers of America-backed Corporate Accelerator Thursday. “I do have one more person that I need to acknowledge and that person is Doug Dresslear,” Tina Peterson, manager of the Sprint Accelerator, told a packed crowd at the National World War 1 museum’s J.C. Nichols Auditorium. …
LaunchKC, Nueterra Capital announce health accelerator with $50K, plus resources for each startup in cohort
Adding its third vertical in less than a year, LaunchKC will expand its grant opportunities deployment with the new LaunchKC Health Accelerator aimed at improving patient outcomes, the program announced Thursday. “LaunchKC continues to see momentum, headed into its fifth year, having invested over $2 million in cash grants to attract or retain 38 tech…
Trust yourself and make your own everything: Hear the artist hustle of Amado Espinoza
Whether directing a contemporary indigenous stage performance, covering the Beatles classic Elanor Rigby with a pan flute and charango for TEDxKC or creating a diatonically-tuned bendy-straw, Amado Espinoza understands the importance of fully committing to a pursuit. “For me, being a professional musician means when you dedicate your entire life to music,” he said. A…
Food delivery giants are eating up restaurant profits; KC startups add survival back to the menu
Ordering a meal at the press of a button is convenient for customers, but behind-the-scenes deals with the delivery giants that made on-demand food popular are running some independently owned restaurants out of business, said Vincent Son. “We’re not making a dime,” said Son, owner of China Feast in River Market, which uses five different…