Bucks general manager John Hammond said the Bucks have always liked Vasquez, who is 28 and has playoff experience, and that he wasn't hesitant to part with a first-round pick to acquire him.
The Bucks will send a 2017 first-round pick (via the Los Angeles Clippers) and the 46th pick (Norman Powell) in Thursday night's draft to Toronto to bring in Vasquez for the backcourt depth and extra floor leadership they've been seeking.
The Bucks finalized the deal shortly after they selected Powell in the second round Thursday night.
Vasquez averaged 9.5 points, 3.7 assists and 2.6 rebounds per game last season for the Raptors, who were eliminated in the first round of the playoffs.
Information from The Associated Press was used in this report.