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
‘More is better’ TrueAccord CEO says as Silicon Valley startup plans for 150 KC jobs
TrueAccord is “furiously hiring” to jumpstart the San Francisco-based startup’s intense expansion plan now supplemented by a growing Lenexa office, said Ohad Samet. “We’ve been very successful [in Silicon Valley], but at some point we realized that we really needed to blow up,” said Samet, co-founder and CEO of the debt recovery startup, which recently…
Blade & Timber opening new axe-throwing experience at Power & Light in late summer
Blade & Timber hopes to stick its cutting-edge axe-throwing concept in the bullseye of Kansas City entertainment, opening a new 11-lane facility in the Power & Light District by the end of the summer. “We are excited to continue growing our brand nationally, while staying true to our roots,” said Ryan Henrich, co-founder of Blade…
Mobility Designed boosted by $1.7M in funding, planning new product launch this summer
Editor’s note: This article is sponsored by the University of Missouri-Kansas City’s Regnier Institute, but was independently produced on behalf of Startland News. Pressure to succeed has only increased since Kansas City-based Mobility Designed found its footing as the first new design for crutches since the Civil War, said co-founders Max and Liliana Younger. What…
Double-clicks to dollars: ULAH duo aims to convert Insta following into ruggedly chic shoppers
A dream has become brick-and-mortar reality for Buck Wimberly and Joey Mendez, the duo taking ULAH from Instagram underdog to Westwood success story. “We wanted the brand to feel sophisticated, accessible and friendly,” explained Wimberly, co-owner of ULAH — a men’s apparel and lifestyle store, tucked within the Woodside Village Shops along Rainbow Boulevard. A…