THURSDAY, 5:20pm: GM Danny Ferry announced today that the team has signed Williams to a multi-year contract (via an official press release).
TUESDAY, 4:04pm: The Hawks have reached an agreement on a multiyear contract with Lou Williams, according to Brian Windhorst of ESPN.com (Twitter link). Atlanta has trades lined up to send Joe Johnson and Marvin Williams to the Nets and Jazz respectively, but still won't have much free cap space, so I would guess the deal is for the mid-level exception.
Williams, 25, was informed by the Sixers last week that they were going in a different direction after they agreed to terms with Nick Young. The guard announced the team's decision via Twitter, tweeting: "Philly, I appreciate you all. Unfortunately I will not be coming back, as an organization they decided to move in a different direction."
Williams was among the league's top candidates for Sixth Man of the Year in 2011/12, leading the 76ers in scoring with 14.9 PPG on .407/.362/.812 shooting in 26.3 MPG. There was some speculation heading into the offseason that he could earn a deal similar to the five-year, $43MM contract Thaddeus Young signed with Philadelphia, but it appears he won't get close to that total salary.