It is a two-year deal worth $2 million, a league source confirmed to ESPN.com's Ramona Shelburne. The 6-foot-10, 250-pound Davis has a player option on the second year.
Time on the court was hard to come by for Davis in Memphis last season, when he averaged 5.7 points and 4.1 rebounds in 15.2 minutes per game. He has career averages of 6.9 points and 5.9 rebounds in four seasons with Toronto and Memphis.
Yahoo! Sports earlier reported the agreement.