Everton boss Dave Moyes admits James McFadden had to be sold after refusing to sign a new contract.
"But there has been a contract there for him for the last two or three months and he didn't really take that up, so when we got the right offer we thought it would be best for him.
"I wish him well. He is a great boy and he was good in the dressing room as well and I hope he does well down there.
"I do expect him to do well because he is a talented boy with a lot going for him. We have had some good times with him here and we are disappointed to lose him."
The manager was also quick to dismiss the suggestion Birmingham paid over the odds to secure McFadden.
He added: "He is worth the money because he is a young, Scottish international who has done really well and who is still improving."