Earlier this week, NVIDIA announced it had entered into an agreement to purchase Ageia for an undisclosed amount but it would be hosting a conference call later this month to go over details. We've learned from sources close to the deal that all shareholders of Common Stock within Ageia (which includes many former employees and current ones) that the company's stock has been nulled through this deal.

Many folks who came to work for Ageia did so under a glimpse of hope that it'd go public someday or even be acquired, but surely nobody could've seen this coming. This can only mean that Ageia was in such financial dire-straights that it was forced to essentially take whatever NVIDIA tossed its way in order to clear off debts.

Our sources tell us that NVIDIA will not disclose the amount it paid for Ageia but we're sure it was for pennies on the dollar - NVIDIA has a history of waiting till companies are bleeding out and desperate before snatching them up. 3dfx and more recently, Portalplayer come to mind.

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