The company said that the acquisition strengthens its integrated payments position, particularly in the real estate vertical.
“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,” Cameron Bready, Global Payments president and chief operating officer said in the announcement.
“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 omni-channel trends are rapidly accelerating.”
Zego was founded in 2003 as PayLease. According to a post on the company’s website, the founders initially focused on digital payments, looking for a way to replace rent checks with more convenient payment options. PayLease is listed as a registered payment facilitator with Mastercard.
As the company grew, it began to expand beyond its payments roots to offer other software solutions and eventually to become a total resident engagement platform. It rebranded in February last year as Zego (powered by PayLease), taking on the name of a startup it acquired in 2019 to better reflect its broader offerings.
Zego serves more than 7,000 property managers, representing more than 11 million residential units in the U.S., the company said. Its solutions support property management tasks such as leasing, onboarding, work orders, and one-time and recurring payments. It processes about $30 billion in payments annually.
Global Payments plans to sell its payments services, as well as other products including payroll and data and analytics, into the Zego customer base, Global Payments CEO Jeff Sloan said on the company’s earnings call.
The transaction is valued at $925 million, including a tax asset. The purchase price is $830 million net of the tax asset. The company expects to close by the end of the second quarter.