Terrible contract and they wanted to play a style that would've buried him on the bench. This is completely a deal motivated by salary cap space - the Lakers have plenty of it after missing out on players, the Pacers want to free up some to give the option of future move. There's not a lot of teams that could absorb Hibbert's contract (even with him giving up a bonus!) and would also want a traditional center.
It is amazing how fast his value has fallen, and how much centers have been devalued by a jump shot heavy, 3 point focused style of play. Chicago fans keep talking about trying to move Noah before he declines any farther. If this is all that Hibbert's worth, then there doesn't seem much of a market out there.
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The Kings actually got passed up by Kurt Rambis and instead opted for Paul Westphal. I used to think I was a Westphal fan, but his Sonics teams were so poorly coached that I cannot believe he actually landed another NBA head coaching job.