I won't say shut down exactly, but I used to work for a small consultancy that was acquired by a huge corporate consulting firm (which made the news a year or two ago for a large contract they'd failed miserably on).

Within a year or so of the acquisition there was a trickle of departures that eventually turned into a mass exodus. There's almost no one left in the org who was part of the original company at this point.

So it goes. Many good engineers and companies spun out of that original one, and found greener pastures and new opportunities. Still, at the time, it felt like a massive waste of a group of truly talented people, to try to corporate-ize them and scare them all off in the process.