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
LendingStandard plans innovation upgrade with $2.5M investment from Flyover Capital
An investment in innovation has landed Kansas City-based LendingStandard $2.5 million in investment funds following the close of a Series A funding round led by Flyover Capital, CEO Andy Kallenbach said. “These are folks that are well-known in Kansas City and have had software businesses in the past, and that’s a really rare combination,” Kallenbach…
Don’t just play the game: MECA Challenge urges students to innovate ‘school of the future’
Challenging Kansas City students to envision “the school of the future” will usher in a paradigm shift wherein teens can see themselves as customers of school, said Katie Kimbrell optimistically. “[Students] don’t even think, ‘Oh, I could rethink this whole thing that I’m experiencing,’ and choose — or even demand — something different,” said Kimbrell,…
KCultivator Q&A: Kyle J Smith talks serious work, socks with sandals, pickled pig brains
Editor’s note: KCultivators is a lighthearted profile series to highlight people who are meaningfully enriching Kansas City’s entrepreneurial ecosystem. The KCultivator Series is sponsored by WeWork Corrigan Station, a modern twist on Kansas City office space. A place to live, work, and play — three ingredients for a new life, said Kyle J. Smith, founder…
New five-year government grant, matching funds will help KCSourceLink fill gaps, build inclusivity
The payoff from a new five-year grant to KCSourceLink will most immediately be seen in a refreshed website with a more streamlined user experience for doers, makers, creators and entrepreneurs searching for help in taking the next — or first — step in building a business. “Our goal is to strengthen the fundamental building blocks of a…