Director at Touch Mike Ford said: "We are very excited about welcoming James and his team into our business; this is a major strategic step forward for Touch.
"There is a growing convergence between the digital world and the live communications and event arena. Digital is very much about dynamic, in-the-moment engagement with all kinds of audiences and not just surrounding events."
James Digital has been around for more than 20 years and has worked with clients such as Richemont, Canon Europe and Zoetis.
Founder of James Digital, James Matthewson, said: "I am really excited about combining the talents of Touch with the digital expertise of James Digital to create engaging and integrated communication solutions under the banner of Touch Real-time, the digital brand within Touch Associates, to spearhead the digital agenda for clients and the agency."This acquisition comes shortly after Touch announced its new strategic alliance with incentive specialist DBMT last month.