The Blues came in with a £6k a week wage offer on top of what Wolves were offering and this persuaded the defender to leave Coventry City.
"It's a very exciting signing for us, it's very important for us because we've lost a couple of our central defenders," David Gold said to Sky Sports.
"He's a very exciting player and he scores goals from defence, which is an extra. He's a record signing for our defence. We've broken the record and for us it's a substantial signing.
"He was a must-have player, we've been tracking him for a long time and we've fought off some ferocious competition from a number of serious clubs.
"It's always a great feeling when you beat off competition to win the battle, and by competition I mean clubs that will be battling with you next season.
"If you can outmanoeuvre those clubs then you've got a greater chance of survival."