Belfast software company Lagan Technologies is in discussions to raise $5 million (€5.8 million) from venture capital sources to expand its business. The company is believed to be in talks with both UK and Irish venture capitalists in a bid to secure new funding by the end of the summer.

Lagan was set up in 1994 and specialises in customer relationship management software, mainly for the financial services, government and telecommunication sectors. Based in Belfast it employs 50 people and has offices in Basingstoke in the UK and Korea.

It is one of the North's fastest growing new generation of high-tech companies and has recently won a series of high-profile awards and contracts.

The company recently beat more than 100 software firms to win a major contract, estimated to be worth more than £5 million sterling (€8.2 million) to provide Birmingham City Council with a one-stop interface for the city's communities.

Mr Des Speed, Lagan's managing director, believes Lagan's "robust business model" will ensure the company's success.

"We are not a flaky dot.com, we have a strong management team which we are continuing to flesh out and we have a track record when it comes to winning business.

"Our contract with Birmingham City Council was a watershed for the company in relation to the size of contracts that we will now go after and our credibility in the marketplace," Mr Speed said.

The company has identified the UK and Ireland as key markets but its success in winning contracts in the Middle East, primarily in Jordan, has inspired it to look further afield for new business.

Lagan is keen to break into the Asia Pacific market and has just appointed a Chinese national, Mr Yaoshen Wang, as marketing executive based in the region.