Manchester UnitedandEvertonalsohadoffers accepted for histransfer, butheturned down the chance to joinEverton, leaving just Unitedand Arsenal in the running.
Biimingham's five-game winning run was ended in a 1-1 draw at Everton as Diniyar Bilyaletdinov fired Everton ahead in the fifth minute but Sebastian Larsson equalized in the 22nd.
Everton Chairman, Sir Philip Carter said "We are all delighted at today's announcement which will hopefully herald a new era at Everton Football Club, when we can all unite and restore this Club to its former glory".