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
Inside grantmaker’s ‘major shift’: Here’s how dreaming big could help rural communities thrive
The Patterson Family Foundation is committed to helping rural communities in Kansas and western Missouri thrive, said Chris Harris, noting the foundation’s new grantmaking strategy expands that access more broadly across its priority region. The Kansas City-based Patterson Family Foundation — founded in 2007 by Neal Patterson, the late Cerner CEO and co-founder, and his…
With the world tanking, this entrepreneur descaled opportunity from the bottom of your dentist’s aquarium
Brian Blake didn’t just start Merriam-based Boodleshire Aquatics; the biologist and lifelong lover of aquatic life built it from a moment of pause. He always dreamed of turning his passion into a business — returning to water at times throughout his career — but the push to take that leap came in an unexpected way.…
Just funded: Meet the newest Digital Sandbox KC startups to earn project innovation resources
The latest round of Digital Sandbox KC funding reflects the region’s commitment to emerging digital health companies — as well as industry-agnostic ventures with big, bold ideas, said Jill Meyer. “These seven startups have shown they have what it takes to be pioneers in their industries, and we’re honored to be able to propel them…
Look inside: Switchyards teases its new KC work club, sells out memberships in hours
Switchyards’ first foray into the region — officially debuting Monday within Kansas City’s East Crossroads — is even prettier than its designers expected, Brandon Hinman said. “And that’s a high mark,” the Switchyards creative director told Startland News. “This big, beautiful, old warehouse is a new neighborhood work club.” Atlanta-based Switchyards — a third-space workplace…