THURSDAY, 4:51pm: Indiana announced the deal through an official press release.
WEDNESDAY: The Pacers have traded Darren Collison and Dahntay Jones to the Mavs for Ian Mahinmi, who will sign a four-year, $16MM contract as part of the deal, reports Jonathan Givony of DraftExpress.com (Twitter links). Jones is due $2.9MM next season and Collison about $2.3MM, so, as John Hollinger of ESPN.com points out, that eats into the amnesty bid the team could make for Elton Brand (Twitter link). Presumably, this also takes Dallas out of the running for Aaron Brooks.
The Pacers are expected to either match Roy Hibbert's offer sheet from the Blazers or sign him outright, so Mahinmi will likely be the backup center for the team. Indiana also has 7'0" Miles Plumlee, the team's first-round draft pick.