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
Edison Spaces selects two startups for its inaugural Jumpstart office space giveaway
The first fruit to bare in an effort of ecosystem elevation, two Kansas City startups have received a jumpstart — courtesy of Edison Spaces, the flexible office space provider announced Friday. “Ultimately, we know the challenges entrepreneurs face when starting a business, because we ourselves faced these challenges,” said Matt Druten, Edison Spaces CEO. A barrier…
A dating app for founders? Hotspots overhead? KCMO mayoral candidates pair up to pitch startup solutions
Bridging the digital divide in Kansas City is simple: Put WiFi hotspots in the trees, quipped Steve Miller, while pitching startup ideas — formed through on-the-spot brainstorming — to a crowd of entrepreneurs. “I love this tree idea … It’s very unique,” laughed fellow Kansas City, Missouri, mayoral candidate and equally off-the-cuff Alissia Canady, Tuesday…
KCultivator Q&A: Darcy Howe helps awaken a sleepy city from its safe spaces, talks rest and refueling
Editor’s note: KCultivators is a lighthearted profile series to highlight people who are meaningfully enriching Kansas City’s entrepreneurial ecosystem. Empowering Kansas City entrepreneurs to realize their dreams is in Darcy Howe’s blood, she said with a coy smile, seated in an open meeting space atop the 24th floor of her downtown office. “Kansas City was…
Fishtech securing market position in the face of emerging threats, founder’s own win record
On track to reach $100 million in annual revenue by 2020, it’s full steam ahead for the cyber security freight train Fishtech Group, said serial entrepreneur Gary Fish. “It took me about 14 years to get [to $100 million] in my first company,” explained Fish, founder and CEO of the three-year-old, Martin City-based, data-driven security…