The 25-year-old, who was on loan at Real Betis in the second half of last season, passed a medical on Tuesday and has signed a four-year contract, Valencia said on their website (www.valenciacf.com).
Pabon made 17 appearances for Betis last term, scoring eight goals, and combines physical strength with blistering pace.
He joins Valencia as a replacement for Spain striker Roberto Soldado, who joined English Premier League side Tottenham Hotspur in the close season.
(Reporting by Iain Rogers, editing by Ken Ferris)
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