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
Smart KCMO takes holistic approach to digital-physical infrastructure, city manager says
Kansas City’s downtown streetcar project showcases the KC smart community’s ability to tackle multiple infrastructure projects at once, said Troy Schulte, city manager. But it isn’t the only example, he told Chelsea Collier, founder of Digi.City, Friday during a Smart Metro Summit at Plexpod Westport Commons. The event was coordinated by Digi.City, the Enterprise Center…
With big KC hiring plans, Aussie-born SafetyCulture prioritizes community engagement
Though SafetyCulture is headquartered 9,000 miles away, its new North American hub in Kansas City is being intentional about driving positive local change — particularly in education, said Ross Reed. “We really want to get into the community to make an impact,” said Reed, SafetyCulture’s North American president. “We’re going to continue to get out…
Catapult International co-founder launches Swivel Software from Lenexa HQ
Online shoppers can track orders the moment they’re placed, shipped and delivered. That kind of visibility along the supply chain — from a product’s beginnings in a factory to its final destination on the shelf — is vital for freight forwarders and importers to be efficient in the international shipping industry, Matt Motsick said. For…
AltCap banks $55M in tax credits to bolster KC’s underserved entrepreneurs
A huge award will enable AltCap to make a broader entrepreneurial impact in low- to moderate-income communities throughout Kansas City. AltCap — a Kansas City-based community development financial institution that focuses on underserved populations — has received a $55 million new markets tax credit award from the U.S. Department of the Treasury. The award enables…