In an ASX announcement on Wednesday, ARN media said it would pay Sandilands $12 million, with $3 million payable as soon as July.
The figure is well below the $85 million the shock jock sought after he and his fellow KIIS FM co-host were sacked following an on-air row.
But Sandilands said he was relieved to put the ordeal behind him when approached by reporters outside his home on Wednesday.
"It's quite daunting to have that hanging over your head," he said.
"I could have dragged it on for like a year and a half."
He said his team was nonetheless confident of a legal victory had he pressed on but now hopes to use his free time investing in his next project.
"It means I can get back to work rather than annoying my wife. I'm just happy to get out of here in the morning and back to work," he said.
"I'm just building my own platform ... I don't care if it's hugely successful or it just keeps the people that were retrenched employed."
That project may be buoyed by the $1.5 million in advertising services on ARN's partner platforms, he is owed under the settlement.
In exchange, however, the radio network will be entitled to a 19.9 per cent share of any new venture for three years.
Sandilands will also be prohibited from engaging with any of ARN's direct competitors for up to nine months from the settlement date.
"This agreement brings certainty for ARN and resolves the legal dispute," ARN chief executive officer Michael Stephenson said.
Legal proceedings with former co-host Henderson continue, the radio giant confirmed.
The matter is listed for a case management hearing in Sydney's Federal Court on Thursday morning.
As of Wednesday afternoon, ARN's stocks were up by 31 per cent to 28c.
The pair were being sued by their former employer after they lodged separate lawsuits following an on-air spat that led to their show being axed.
Both were seeking the full payout of the remainder of their 10-year, $100 million contracts signed at the end of 2023.
But ARN claimed the duo cost the company key advertising revenue through their sacking.
By breaching their contract and making the future of their breakfast show untenable, both are liable for the subsequent loss of advertising revenue, it said in Federal Court documents.
The public bust-up moved into the legal arena after an exchange between the pair in February, when Sandilands accused his co-host of being "off with the fairies".
The on-air comments prompted Henderson to say she could no longer work with Sandilands.
