Davison agreed to an Exhibit 10 contract with Orlando on Thursday, Jason Beede of the Orlando Sentinel reports.
Davison was let go by Houston in early August, but he's since earned an opportunity to compete for a roster spot in training camp with the Magic. He played in 28 regular-season games a year ago with the Rockets, averaging 2.5 points, 1.2 rebounds and 1.3 assists in 7.8 minutes per contest.