The Buccaneers strengthened their attacking options with the signing of the Norwegian-born striker this week.
The 27-year-old has put pen to paper on a two-year deal, with the club holding an option to extend for a further season.
Pedersen arrives from Norwegian outfit Sogndal Fotball with an impressive scoring record, having netted 51 goals in 117 appearancdes,including eight goals in 14 league matches last season.
Speaking after arriving at Bucs, a delighted Pedersen told the Sogndal website: "This feels like a once-in-a-lifetime opportunity.
"It's such a big club that I couldn't help but seize the opportunity when it came.
"At first I was a little skeptical, but the more I've learned about the club and life in South Africa, the more excited I've become.
"I'm very grateful that Sogndal came to an agreement with Orlando Pirates."
Player logistics liason Havard Flo added: "This is a great opportunity for Sebastian. He has expressed that this was an exciting step that he would like to take if we found a solution that worked for all parties.
“At the same time, Sogndal needs to focus on the economy, and we are a club that develops and sells players.”