Thomson, who is currently deputy editor of the Observer's supplement Observer Sport Monthly, was appointed as editor after a search that was headed by Loaded founder James Brown.
Brown was called in to act as a consultant and interviewed candidates along with Lesley Gill, managing director of Time Out. The pair interviewed 14 candidates for the role.
According to Brown: "It was inspirational to get the opportunity to listen to some of the best editorial talent around pitch for one of the hottest magazine jobs going."
Thomson has a strong background in sports journalism, having worked for Goal magazine between 1995 and 1997 and for Sky Sports News as an assistant producer between 1998 and 1999. Before joining the Observer Sport Monthly in 2002, he was a commissioning editor at the men's title Maxim, where he worked for three years.
He said: "I want to maintain Time Out's status as the best listing publication in the UK, but also make the magazine more international in its ambition, bringing to the mix brilliant interviews, lively opinion and the best design. I can't wait to get started."
Time Out is his first time as editor, but Brown said he was confident that Thomson would make the magazine a "must buy" for Londoners and visitors.
Chris Hemsdale, Time Out's deputy editor, has been acting editor since Davies' departure was announced in June. Its last audited circulation figure was 87,110, up by 2% for the year.
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