The Championship leaders will be hoping that Towell can strengthen their promotion push.
The 24-year-old has signed a two-and-half-year deal with the Seagulls, but will not be able to play for the club until January, subject to international clearance.
Chris Hughton's side returned to the top of the Championship after defeating Birmingham on Saturday, and remain the only unbeaten team in the top four divisions.
While some may be concerned about the step-up to the Championship, Hughton told the club's official website that he believes that Towell will be a great addition, and will bring something new to the team.
"Richie's had a wonderful season in Ireland and scored a lot of goals for the champions Dundalk from midfield, and that really caught our eye," he said.
"He is something different to the number of very good midfield options we already have here at the club, and I am really looking forward to having him as part of our squad in the New Year," he added.
The former Republic of Ireland U21 international helped his current side to consecutive League of Ireland titles. His form during this past season has been particularly impressive - Towell finished as the division's top goalscorer with 25 strikes to his name, which left him an astonishing 12 goals clear of his nearest rival.
The former Celtic trainee will be hoping that he can bring the form he displayed in Ireland over to the Amex Stadium. If he can, then Brighton may well be booking their place in the Premier League for the first time.