Minnetonka-based IT consultant McKinley Consulting, Inc., announced Tuesday that it has acquired Novon Consulting, a project management and business consulting firm that serves the financial services market.

Terms of the acquisition were not disclosed. Elk River-based Novon has sales of $4 million and a staff of 20 people, including 16 consultants. McKinley's sales totaled $8.2 million last year, and the firm had 81 employees prior to the acquisition.

Until now, McKinley has focused on offering IT consulting services to industries including health care, retail, manufacturing, and insurance. The firm said that the acquisition will help it expand to the financial services industry. Novon will keep its name and will operate as a wholly owned subsidiary of McKinley.

McKinley also said that the acquisition comes at a time when the consulting industry is rapidly expanding.

“We feel the growing market will provide us with unique opportunities and the Novon acquisition was certainly one of those,” Jim Erickson, president of McKinley Consulting, said in a statement. “We have seen an increase in the number of companies that are looking to bring in business and IT consultants.”

Erickson told Twin Cities Business that the acquisition will not result in any lay offs and that Novon will keep its name and operate as a wholly-owned subsidiary of McKinley Consulting.

McKinley was founded in 2003 and mostly serves local clients. Its consulting services include project management, application development, quality assurance, and business analysis.