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Global Payments Inc. has announced its acquisition of Zego, a prominent provider of real estate software and payment solutions. This strategic move is set to enhance Global Payments' footprint in the real estate sector, a market valued at $6.5 billion. The acquisition underscores the growing convergence of software and payments, positioning Global Payments for further growth and innovation in the industry.
Founded over 20 years ago, Zego provides property management software solutions designed to automate workflows and integrate seamlessly with existing property management programs. Its core products include Zego™ Pay for digital payment automation, Zego™ Utility for utility management, and Zego™ Mobile Doorman for resident engagement. Zego differentiates itself with a modern user experience, world-class service and support, and enterprise-grade security, including PCI Level 1 Compliance and 256-bit encryption.
Global Payments is a leading financial and payments technology company, providing a comprehensive commerce platform that merges software and payments in the cloud. Their key products and services include payment acceptance, issuer solutions, industry-specific software, business tools, B2B solutions, and employer solutions. As a Fortune 500 company, Global Payments has a significant global presence, handling over 66 billion transactions annually and partnering with thousands of financial institutions worldwide, making them a key player in the industry.
Global Payments announced its acquisition of Zego on May 4, 2021, with the transaction expected to close by the end of the second quarter of 2021. This acquisition comes at a time when digital commerce and omnichannel trends are rapidly accelerating in the real estate market, partly driven by the COVID-19 pandemic. The timing reflects Global Payments' strategy to capitalize on the growing demand for integrated digital solutions in property management.
Market Expansion: The acquisition of Zego allows Global Payments to extend its leadership in software into the real estate vertical, a market valued at $6.5 billion. This move is consistent with Global Payments' strategy to leverage its core competencies across new verticals globally, providing an opportunity for international expansion of Zego’s services.
Technology Integration: Zego's cloud-native SaaS platform will be integrated into Global Payments' offerings, enhancing property management and resident engagement through a comprehensive suite of digital commerce solutions. This includes functionalities such as leasing, payments, utilities management, and resident communications, which will broaden and deepen Global Payments' product portfolio.
Competitive Advantage: The acquisition positions Global Payments at the convergence of software and payments in a rapidly growing vertical market. By incorporating Zego's technology, Global Payments aims to modernize the resident experience and boost operational efficiency for property managers, thereby strengthening its competitive edge in the digital commerce and omnichannel trends. Additionally, Zego’s established market presence and significant annual payment facilitation of about $30 billion further enhance Global Payments' market position.
Following the acquisition by Global Payments, Zego's operations and management are expected to undergo significant changes. While there will be no immediate impacts on current customers or residents, the integration of Zego into Global Payments' broader software and digital commerce portfolio will likely bring enhancements to Zego’s resident experience management platform. This strategic move aims to drive more value-added services and capabilities, leveraging Global Payments' global presence for potential international expansion. The acquisition will also see Zego's cloud-native SaaS platform integrated into Global Payments' offerings, enhancing property management and resident engagement services.
In terms of product offerings, Zego's comprehensive property management platform, which includes functionalities such as leasing, payments, utilities management, and resident communications, will be expanded and deepened within Global Payments' portfolio. This integration aligns with the accelerating trends in digital commerce and omnichannel services in the real estate sector. While specific details on employee and customer reactions are not provided, the acquisition reassures customers that they can expect the same level of service and innovation moving forward. For founders considering business transitions, tools like Sunset can assist in managing such processes compliantly, ensuring a smooth and efficient transition.
