The team announced the move Monday night. NFL.com's Ian Rapoport reported that it's a one-year contract worth up to $3 million and includes a $1.5 million signing bonus, according to a source who saw the contract.
"We feel great about acquiring a talented player in Darrius Heyward-Bey," general manager Ryan Grigson said in a statement released by the team. "He's big, strong and shows toughness in traffic and after the catch. He's got elite finishing speed that's as good as there is in the NFL.
"With this staff, this team and overall culture we're building here in Indy, we felt strongly that he was the right player and person at the wide receiver position for us moving forward."
Heyward-Bey chose the Colts over the Detroit Lions, with whom he visited last week. Heyward-Bey called the idea of playing on the Lions "very appealing," though the same thing can be said about playing in an offense that should play to his strengths.
Heyward-Bey was the seventh overall pick in the 2009 NFL Draft, but he never came close to matching expectations on the Raiders. In 56 games, he had 140 receptions for 2,071 yards and 11 touchdowns. He caught 41 passes for 606 yards and five touchdowns in his fourth and final season with the Raiders.
Heyward-Bey now gets a golden opportunity to resurrect his career playing alongside one of the game's best young quarterbacks. We'll see if he takes advantage of the reset button.
Follow Dan Hanzus on Twitter @DanHanzus.