Software vendor Corel is in talks with two venture capital firms about a possible takeover of the company, it announced yesterday.

Vector CC Holdings recently bought 22.89 million shares of Corel, previously held by Microsoft, representing around 20 percent of Corel's share capital. Corel's board has signed an agreement to accept any Vector offer for the outstanding shares in the company which value stock at higher than $1.10 per share.

The company is also using an investment bank to sound out other possibly buyers and it is actively seeking takeover proposals.

Following this announcement Corel saw shares jump 24 percent.

If a buyer is found it will spell the end of one of the industry's longest standing companies — Corel has been in existence since 1985, and helped to kick start the PC graphics market with its CorelDraw product, launched in 1989.

It will also become one of the latest casualties of the failing IT market, which saw MP3 maker, SonicBlue, go under earlier this week.