I had a similar experience. The CEO even warned the developers to find work elsewhere since the companies products would probably be dissolved since all the bigger company was interested in was some of our technology.

I was smart along with a few others. The rest of the employees rolled the dice and lost. They discontinued the entire line of products and canned any of the employees who came over with the acquisition. Within a year, there were no traces of our startup, just a few new products using our technology.

I'm still bitter about it. . .