Spotify acquires Swedish music startup Soundtrap for 'at least $30 million

Spotify is buying Swedish music tech startup Soundtrap for an undisclosed amount.Soundtrap is a collaborative online recording studio that was valued at $25 million (SEK 207 million) last year.Spotify is buying an increasing amount of startups; with nine deals since early 2016.Spotify has bought Soundtrap, a Stockholm-based online music studio that lets users create music together with others in real time."Soundtrap's rapidly growing business is highly aligned with Spotify's vision of democratizing the music ecosystem," the Swedish music streaming giant said in a statement on Friday.The price tag is said to be at least $30 million, tech siteBreakit writes. This is based on an estimated surge in value since Soundtrap's $6 million Series A round last year, which valued the company at 25 million dollars.Soundtrap CEO Per Emanuelsson commented the deal toDi Digital: "It's fantastic. We've been discussing this deal for a while."Soundtrap's portable music studiohad a turnover of about $120k last year, according to Di Digital, withschools as the primary customer group."We've captured creative people who don't like the complexity in normal music software. The simplicity helped the service break through in schools," Emanuelsson said.Since its founding in 2013, the 35-employee company has raised $8,5 million in venture capital, with Industrifonden, music producer Andreas Carlsson and the founders of phonebook app Truecaller as major owners.Spotify has made nine acquisitions since the start of 2016. The biggest deal to date is music data service Echo Nest, which cost Spotify about $60 million. Soundtrap marks Spotify's first acquisition in Sweden since it bought playlist app Tunigo in 2013.Spotify is said to be preparing a direct listing of shares on NYSE in the first or second quarter next year,Reuters' sources have said.SEE ALSO:Spotify and Apple Music just killed another competitorJoin the conversation about this storyNOW WATCH: What happens to your brain and body if you use Adderall recreationally
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