In addition, the merged company, to be known as PowerAdz.com, said it
secured equity financing of more than $4.5 million. PowerAdz.com headquarters
will remain at the Rensselaer Technology Park in Troy, NY, and the company
said it plans to add 30 positions by the end of the year.
“AdQuest has been our strategic sales partner for the last year,” said Kurt
Lozier, vice president of PowerAdz.com. “The success of that relationship and
the synergy between our two businesses made this a natural progression.”
Lamonte Rhoades, manager of AdQuest, will assume the role of vice president of
sales and channel alliances at PowerAdz.com.
PowerAdz.com is known for its flagship product, CarCast AutoMarketplace, an Internet-based
auto locating and buying service for consumers, featuring local auto dealers
and co-branded content managed by local newspapers.
Wisconsin-based AdQuest electronically aggregates classified advertisements
from newspapers across the country, making them available on each paper’s
locally branded Web site, and at adquest.com.
The company recently signed its
600th newspaper to a client list that includes the New York Times Regional
Newspaper Group, the American Newspaper Group, the Liberty Newspaper Group and
the Milwaukee Journal Sentinel.
PowerAdz.com said it will continue to market the AdQuest classifieds product under the
AdQuest has been an operating unit of Journal Communications Inc. since 1995,
and with this transaction, Journal Communications is the largest single
shareholder in the merged company. Paul M. Bonaiuto, executive vice president
and CFO of Journal Communications will have a seat on the board of directors.
Robert Godgart of PowerAdz will continue as chairman. Mark Chudzicki will
continue as president and CEO.
The PowerAdz equity financing was led by First Albany Enterprise Funding and
Advantage Capital led the financing. The funding round also included
participation from Journal Communications, Exponential Business Development,
the New York State Science and Technology Foundation and over $1 million from
private investors led by J.
Markham Green, a limited partner in Goldman, Sachs & Co.
PowerAdz.com said it plans to use the new funding to expand its sales and
marketing initiatives and to develop, partner with or acquire technologies
necessary for its newspaper customers to compete with national Internet brands
for local advertising dollars.