LSI Logic Corp. agreed to merge with C-Cube Microsystems Inc. in an $878 million stock-for-stock exchange. Under the agreement, each outstanding share of C-Cube common stock will be exchanged for 0.79 of a share of LSI Logic common stock.

The merger, expected to be completed by the end of June, combines the companies' complementary technologies for high-growth cable, satellite, terrestrial and DSL set-top box markets, LSI reports.

C-Cube provides silicon for digital set-top boxes, DVDs and Codec-based applications.