Description Nvidia on Friday announced that it has entered into an agreement to purchase the graphics assets of 3dfx for $70 million and 1 million shares of common stock, in a deal worth approximately $112 million.
"We're buying their graphics assets. So [that includes] patents, IP [intellectual property], pending IP patents, trademarks, brand names, chip inventory. We are not in a retail business and we are not doing boards, so we are just taking the chip-level stuff," said Nvidia spokesperson Derek Perez.
According to statements from both companies, they have agreed to drop their ongoing legal actions against each other, which includes a patent infringement levied against Nvidia by 3dfx. The acquisition is expected to be complete in the first quarter of Nvidia's 2002 fiscal year.
Nvidia has also agreed to loan to 3dfx $15 million for working capital once the agreement is signed.
3dfx spokesperson Bubba Wolford told Gamecenter that all 3dfx employees have been laid off, including himself. Perez said that this is an opportunity for Nvidia to hire some former 3dfx talent.
