Akamai Technologies has signed an agreement to acquire streaming-audio and -video company Intervu.

The deal is worth around US$2.8 billion, the company said in a statement yesterday.

Akamai will offer 0.5957 shares of its common stock for each Intervu share. The deal should be completed by mid-2000, subject to regulatory and shareholder approval, the company said.

The merger is aimed at creating the largest streaming-media and content-delivery company on the Internet, according to the statement.

The combined company will have more than 3,000 servers in 100 networks across 40 countries, Akamai said.

Akamai Technologies was chosen last year by Apple as its network provider for QuickTime TV. Apple invested $12.5 million in June in exchange for 5 per cent shares in the company.