Augustin, 25, spent last season with the Pacers backing up George Hill. In 76 games, he averaged 4.7 points and 2.2 assists.
After trading Jose Calderon last season, the Raptors have been extremely thin at point guard with Kyle Lowry being the only one under contract entering free agency this summer. An obvious need, the Raptors have wisely filled it with a very capable player who still has a little of untapped potential in him.
And it's a smart deal, too. New general manager Masai Ujiri always makes calculated, wise decisions. Bringing in Augustin on just a one-year deal paying $1.3 million is a quality contract for Toronto that doesn't commit anything long term.
Augustin was drafted ninth overall by the Bobcats in 2008.