NVIDIA announced that it has signed a definitive agreement to acquire PhysX creator AGEIA Technologies.
PhysX has been used in more than 140 games shipping or in development on the PlayStation 3, Xbox 360, Nintendo Wii and PC.
"The AGEIA team is world class, and is passionate about the same thing we are - creating the most amazing and captivating game experiences,"said NVIDIA president and CEO Jen-Hsun Huang.
"By combining the teams that created the world's most pervasive GPU and physics engine brands, we can now bring GeForce-accelerated PhysX to hundreds of millions of gamers around the world."
No financial terms were disclosed, and the acquisition remains subject to customary closing conditions.
"NVIDIA is the perfect fit for us," said AGEIA's co-founder and CEO Manju Hegde.
"They have the world's best parallel computing technology and are the thought leaders in GPUs and gaming. We are united by a common culture based on a passion for innovating and driving the consumer experience."
AGEIA was founded in 2002 and has offices in Santa Clara, California; St. Louis, Missouri; Zurich, Switzerland; and Beijing, China.