Stockholm, Sweden (November 20, 2017)—Spotify has acquired fellow Stockholm-based company, Soundtrap, a web-based collaborative recording and production studio. Acquisition terms were not disclosed other than that Soundtrap will continue to operate as before, though some tech sites have estimated the deal at $30 million.
Founded in 2012 by Björn Melinder, Fredrik Posse, Gabriel Sjöberg and Per Emanuelsson, Soundtrap debuted online in 2014, offering a subscription model that allows users to create music, podcasts and so on with others in real-time.
Initially aimed at amateur recordists and musicians, recent years have seen the platform gain traction in the music education sector, ultimately leading to a separate version that was released for educators. According to tech site DI Digital, schools are the company’s largest customer base, fueling the majority of its $120,000 turnover last year.
The acquisition is Spotify’s fourth this year, coming in the wake of purchases of MightyTV, Mediachain and Niland. The streaming service is widely expected to float an IPO sometime in the first half of 2018.