In a record business deal for Ottawa companies, Mitel Networks says it will go public, hoping to raise $230 million.

The money will be used to pay off debts and allow for expansion.

Mitel, which makes phone equipment, now has annual sales of over $700 million, making it the biggest Ottawa-based tech firm.

Mitel won't put a timeline on the public offering, nor will the company say if the listing will be on the New York Stock Exchange. However, the company filed its paperwork in the U.S.

An Ottawa lawyer who specializes in technology says we should expect to see more of these public offerings, as well as takeovers.

"We are very busy with deals that will unfold over the next few months: both mergers and acquisitions, and I expect we will see some IPOs," said Debbie Weinstein, who has experience with dozens of these kinds of deals.

The last initial public offering (IPO) for a large Ottawa firm was Dragonwave, which moved onto the New York Stock Exchange and raised $130 million in October of this year.

There have been 60 IPOs in New York this year alone, double the number from 2008.

In 2006, Mitel owner and billionaire Terry Matthews shut down a public offering and instead bought a U.S. firm. Now, he feels the market would be more accepting of a public offering.

In regulatory filings, Mitel says last year was the first year since 2001 that they made a profit.

CEO Don Smith told CTV Ottawa a few months ago that the Nortel sell-off gives Mitel a market opportunity while their competitor Avaya works to absorb its Nortel acquisition.

Claude Haw, head of Ottawa's economic development agency, told CTV Ottawa on Wednesday that the move is good for Ottawa.

"Obviously, this is very good news for the company and the region. Although Mitel is an old company (founded in 1973), this is not your father's Mitel," said Haw.

He says Ottawa is well-positioned for a surge in growth in the knowledge-based sectors with several strong local public companies, a broad range of multi-national companies with major R&D centres in Ottawa and an array of small- to medium-sized companies.

For comparison purposes, JDS Fitel went public in 1996 for $93 million. March Networks went public for $72 million and Bridgewater went public two years ago for $35 million.