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
Prairie Village company’s Firefly lends serenity, tech to backyard fireworks
Prairie Village-based Winco Fireworks is officially launching Firefly, a remote firework firing system, introducing a tech blend to the formerly traditional firework industry and backyard Fourth of July celebrations. “It’s a really neat invention,” said Michael Collar, president of Winco Fireworks, which focuses on consumer fireworks. “There’s a lot of commercial firework companies that do…
We Create KC report: Startup investment soared to $540M in 2017
A startling statistic for those who think capital merely flies over the Midwest: Kansas City saw a 69 percent increase in startup investment from 2016 to 2017, according to KCSourceLink’s We Create KC report. All told, early-stage businesses classified by KCSourceLink as startups — typically defined as those with 20 or fewer employees — nabbed…
Hack Midwest offers coders freedom through 24-hour app creation competition
Technologists are often surprised by what they’re able to accomplish when they work together in a competitive format, Mike Gelphman said. That’s part of the reason Hack Midwest is returning this summer with the objective to inspire more techies to embrace their imagination, said Gelphman, founder of the competition, as well as KCITP, an area…
KCultivator Q&A: John Coler champions making a quick impact, packs of dolphins
Editor’s note: KCultivators is a lighthearted profile series to highlight people who are meaningfully enriching Kansas City’s entrepreneurial ecosystem. Today Startland takes a closer look at startup ecosystem champion John Coler. Check out our features on Made in KC’s Tyler Enders, Hispanic business builder Pedro Zamora, ‘fashionpreneur’ Jordan Williams, Plexpod founder Gerald Smith, innovation coach Diana…