The rapper has joined the Stateside label - which is part of Universal - with the aim to launch his music across America in "a big way".
Speaking about his new deal, Example said: "I'm pleased to have signed to a major label like Mercury/Universal in the US. It was important to me to sign with someone who understands not only my ambitions but also the way I work.
"I want to do it on my own terms, I enjoy a good challenge and can't wait to get started."
President of Mercury Records US David Massey added: "Everyone here is very excited to be working with Example, a world-class songwriter and performer who is now a leading force in the live arena.
"[He is] a true modern-day rock star who is at the forefront of the new wave of exciting electronic music exploding here in the US."
Example is currently in the recording studio working on his new album and will embark on his first ever UK arena tour this April.
> Example: 'My new album is The Strokes produced by Skrillex'
Watch the music video for Example's 'Changed The Way You KIss Me' below: