ESPN Los Angeles' Ramona Shelburne previously reported that the Lakers were interested in signing the fourth-year shooting guard.
Last season he notched 3.9 points and 1.8 rebounds in 12.5 minutes of action a night. Since entering the NBA, he has posted averages of 4.5 points and 1.8 rebounds on 40.3 percent shooting in 14.4 minutes per game.
Having failed to live up to his draft stock thus far, Henry is considered a source of untapped potential. In 2009, he ranked third in ESPN's Top 100 High School Players database, behind Avery Bradley and Derrick Favors and ahead of DeMarcus Cousins and John Wall.
Revered primarily for his offensive dexterity, Henry gives the Lakers yet another shooter to add to their growing arsenal. Though he's connected on just 28.9 percent of three-balls for his career, he has shot at least 36 percent from deep in each of the last two seasons.
Henry's signing comes just after Los Angeles agreed to terms on a partially guaranteed one-year deal with journeyman Shawne Williams, another player valued for his floor-spacing abilities.
Both figure to get an opportunity at cracking the rotation in hopes of adding instant offense to combat the Lakers' lack of size and defense.
What role will Xavier Henry play for the Lakers?
Their pickup of Henry now gives the Lakers 14 players, leaving them with one more spot to be filled.
They may fill it prior to opening night or keep it open in case a need arises during the regular season.
Bringing Henry in doesn't guarantee much in terms of individual production, but it's further evidence that the Lakers are committed to running a more Mike D'Antoni-friendly offense. As for whether this shift in priority will culminate in a postseason berth, we'll just have to wait and see.