The move is part of Elmwood’s plan to create a "strong digital offering" across its global studios. Framework Creative specialises in creating experiences with augmented reality and virtual reality technologies, and has created work for Ikea, Virgin Holidays, Dell and Philips.
The investment will help Elmwood "facilitate a seamless offer that includes the application of immersive simulation technologies to enhance brand experience".
Framework Creative will continue as a standalone business and it will continue to be run by founders Roddy Robertson and Sam Fazakerley.
Steve Gatfield, chairman of Elmwood, said: "AR and VR are the new frontiers of immersive experience. Adoption of AR alone is expected to grow to over two billion users by 2020.
"As designers of brand meaning, we are hungry to harness their immense potential to redimensionalise experience and deepen engagement, especially as physical products transform into interactive media.
"The impact of AR and VR on product utility and memorability will transform the scope to design in new levels of engagement that can shape a brands iconic status."