IT companies N'compass, Inc., and Applied Communications of Minnesota, Inc., recently announced plans to merge.

Minneapolis-based N'compass, led by cofounder and CEO Gerry Hansen, and Maple Grove-based Applied Communications, led by owner and President Kristi Paul, will be fully merged by May 1. The companies said in a news release that they are merging in order to meet growing network enterprise demands of mid-size and large businesses throughout the Upper Midwest.

Financial terms of the deal were not disclosed, and a company representative didn't immediately return a message inquiring about the financials of each organization.

The merged company will employ about 40 and operate under the N'compass brand, the companies said. Both companies' existing offices will be maintained, and employees will be able to work from the office of their choosing.

The merged company will focus on large corporations with large-scale and complex data management operations while building a presence among emerging businesses that seek strategic IT counsel.

Clients of the combined organization include Allina, Best Buy, BlueCross BlueShield of Minnesota, General Mills, Lawson Software, Medtronic, and U.S. Bank.

“Today's companies are looking at every aspect of their business operations to find ways to operate more efficiently, reduce costs, and optimize their IT investments,” Hansen said in a statement. “By merging with Applied Communications, we can now address the needs of our clients at every level, from C-level strategy development to the installation of hardware and software that supports an organization's goal of operating more profitably.”

Following the merger, Paul will become executive vice president of sales, and Hansen will serve as president and CEO.