Global Payments acquired residential San Diego-based real estate tech startup Zego for nearly $1 billion
Global Payments, an Atlanta-based provider of payment technology and software solutions, announced it has reached an agreement to acquire San Diego, California-based tech startup Zego from Vista Equity Partners in an all-cash transaction valued at $925 million, inclusive of a tax asset.
The acquisition will help Global Payments extend its leadership in software into the real estate vertical, a $6.5 billion target addressable market with a strong payments nexus and significant secular tailwinds.
Global Payments said the effective purchase price is approximately $830 million, net of the tax asset. Global Payments will finance the acquisition with its existing credit facility and cash on hand. The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to close by the end of the second quarter of 2021.
Founded in 2017, Zego (Powered by PayLease) is a property technology company that frees management companies and community associations to go above and beyond for residents through resident experience management solutions. Zego enables operators in the residential real estate industry to modernize their resident experience, boosting satisfaction and operational efficiency. From payments and utilities to communications and smart devices, everything seamlessly integrates into the property management back-end system.
Zego also provides resident experience management software and digital commerce solutions to property managers primarily in the United States. The transaction extends Global Payments’ leadership in software into the real estate vertical, a $6.5 billion target addressable market with a strong payments nexus and significant secular tailwinds.
Zego recently acquired Mobile Doorman, the multifamily industry’s leading mobile resident engagement and data analytics solution. The acquisition was completed on February 1, 2021.
“We are delighted to expand our software and digital commerce portfolio with the addition of Zego, a real estate technology company that modernizes the resident experience with a comprehensive property management software platform,” said Cameron Bready, Global Payments President, and Chief Operating Officer. “This acquisition aligns perfectly with Global Payments’ strategy by enhancing our position at the convergence of software and payments in one of the largest and most attractive vertical markets worldwide, where digital commerce and omnichannel trends are rapidly accelerating.”
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 a significant scale with over 7,000 property management customers representing more than 12 million residential units in the United States utilizing its comprehensive real estate technology platform.
Zego’s solutions support property managers and residents throughout the real estate lifecycle, from leasing and onboarding to one-time and recurring payments, work orders, utility management, resident communications, renewals, and offboarding. Through its integrated payments offering, Zego facilitates approximately $30 billion in payments annually in a market with a volume opportunity that exceeds $1 trillion.
Global Payments platform is used by over 3.5 million customers in more than 100 countries.
May 7, 2021 Updates: Zego is actually headquartered in San Diego with offices in Chicago and Kansas City.