The 11-year-old privately-held ISG has a revenue of close to Rs 8 crore and is headed by Rajiv Jha and has 65 top hotels of the country using its software.

Post-merger, NRIL will float a new entity, to be called Ranve Interface Systems. It will give NRIL control over intellectual property rights to a number of solutions developed by ISG in the area of front office, back office, point of sale and banquet sales solutions.

After the merger, NRIL will target an ambitious Rs 40 crore revenue at the end of the present fiscal.

NRIL has launched three products on CRM, asset management and help desk solutions, all branded under the Intelli umbrella. With the merger of ISG, a clutch of other solutions belonging to ISG will also soon be branded under the Intelli brand and relaunched after being made fully Web-enabled, Bakshi said.

The eight-year-old privately-held NRIL, which claimed a turnover of Rs 9 crore last financial year, is also in talks with three companies for a private placement to fund the future expansion plans, said NRIL promoter and managing director Rajesh Bakshi.

These are `Old Economy' companies from India and Malaysia who are keen to invest in a young, growing Indian IT company, said Bakshi. He, however, ruled out any plan for an initial public offering to raise the required funds.

NRIL is also in the process of strengthening its board with the induction of a former CEO of a well-known multinational corporation, among others. ``We are talking to a number of people and will announce the names of a few industry heavyweights who are expected to join us soon,'' he said.

The expansion plans of NRIL include a foray into applications service provider (ASP) with operations across eight-cities within next three to four months.

It has already launched a company in Malaysia which is a joint venture with a few private investors. It has been accorded the multimedia supercorridor status by the Malaysian government and already picked up a few contracts for implementing call center solutions and customer relationship management package developed by it. NRIL is now gearing up to launch a similar entity in Singapore later this year.