Global Payments Inc.
GPN,
-1.01%
said Tuesday it has agreed to acquire Zego, a provider of resident experience management software for property managers, in an all-cash deal valued at $925 million, including a tax asset. The purchase price is $830 million, net of the tax asset. The deal is expected to close by the end of the second quarter and will be financed using an existing credit facility and cash on hand. "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," Global Payments said in a statement. Zego serves more than 7,000 property management customers in the U.S. representing more than 11 million residential units, and facilitates about $30 billion in payments a year. Global Payments shares rose 1.2% premarket, but are down 1.4% in the year through Monday, while the S&P 500
SPX,
+0.27%
has gained 11.6%.