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
‘Legendary’ UMKC Enactus team earns spot in national entrepreneurship finals
The University of Missouri-Kansas City’s Enactus team is the fourth most impactful in the country, declared Ben Williams. “At UMKC Enactus, we take the world’s greatest challenges into our own hands, channeling our power as students, advocates, and entrepreneurs,” the team told a crowd gathered Tuesday at the Kansas City Convention Center, as they took…
Look inside: Plexpod opens coworking oasis amid River Market’s concrete jungle (Photos)
Faux grass lining the walls. Neon signs. A mix of vintage and contemporary stylings. Plexpod’s Eric Milner was initially skeptical of plans for a jungle theme in one of the co-working space’s enclaves — quirky seating areas tucked between offices and amenities at the new River Market location. “It really panned out though. Stephanie [Medina]…
Car vending machine drives into KC skyline with Carvana’s launch off Southwest Boulevard
Towering over Southwest Boulevard, Missouri’s first Carvana location has been parked in Kansas City and it’s finally ready to rev its engine, Amy O’Hara confirmed Thursday. “It’s a beautiful location and we’re looking forward to showing everyone our signature car vending machine experience and the new way to buy a car,” said O’Hara, Carvana associate…
UMKC awards students $75K in prizes at Regnier Venture Creation Challenge
Student startups are growing rapidly on the University of Missouri-Kansas City campus, said Bryan Boots. Such acceleration has been further propelled thanks to the recent distribution of $75,000 in prize money, awarded to a series of winners of the Regnier Venture Creation Challenge Competition May 2-3, split across events at the Ewing Marion Kauffman Foundation…