"With a tight three-week timeline, they went above and beyond to ensure payroll and benefits were seamlessly set up in all countries."

Learn how Omnipresent helped Soundtrap to complete its carveout from Spotify quickly and compliantly

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Soundtrap is a cloud-based recording and mixing tool that allows musicians and bands to collaborate in real time. Originally a startup company founded in Sweden 2012, Soundtrap was acquired by fellow Swedish company Spotify in 2017.

In 2023, two of Soundtrap’s original founders, Per Emanuelsson and Björn Melinder made the decision to acquire the company back from Spotify.

Buying the company back was an exciting opportunity for Per and the Soundtrap leadership team. But this divestiture brought with it a number of challenges.

How best to transfer Soundtrap’s employees from Spotify without the permanent establishment of legal entities in other countries? How to ensure that the new Soundtrap team were able to enjoy the competitive employee entitlements and benefits they received at Spotify.

Most importantly of all - how to do this quickly and compliantly to meet a deadline of 1st July.

Navigating the acquisition process

When it became apparent that they wanted to acquire Soundtrap back from Spotify, the leadership team needed to find the most efficient, compliant and cost-effective way to transition 75 employees who were distributed across eight countries into the new company.

In the USA and UK Soundtrap needed to setup legal entities and was looking for a PEO solution to help them manage benefits, pensions and payroll. In European countries with fewer employees per country Soundtrap was looking for a much more bespoke solution.

Choosing Omnipresent

As they weighed up their options, the Soundtrap leadership team wanted to prioritise:

• Ensuring an excellent employee experience throughout.
• Maintaining competitive benefits for employees after the transition.
• Speed and efficiency.
• Value for money.
• Ease of use and automation.

The combination of Omnipresent’s easy-to-use platform, coupled with a team of experts who were able to offer advice on payroll and benefits options in the USA and Europe, made Omnipresent the obvious choice for Soundtrap.

The Omnipresent team worked quickly to review existing employment contracts with Spotify, consult on key labour laws in relevant countries, harmonise benefits and prepare new employment contracts for review.

"Choosing Omnipresent was an easy decision for us. Their commitment to delivering the highest quality services was evident from the start, supported by solid recommendations. We've been exceedingly pleased with our choice, experiencing nothing but satisfaction since day one."
- Per Emanuelsson, CEO Soundtrap

How Omnipresent’s EOR solution simplified the divestiture process

For other countries where Soundtrap has a presence but no legal entities of their own, Omnipresent was able to support the employee transition during the course of the acquisition through its EOR solution. This meant that Omnipresent bridged the gap by becoming the legal employer of talent in these countries on behalf of Soundtrap, while also managing end-to-end payroll, benefits and select HR services.

In Italy, The Netherlands and Denmark, Omnipresent’s EOR service meant that Soundtrap’s employees were able to transition into new health and life insurance arrangements.

PEO solutions in the USA & UK

For USA and UK where Soundtrap set up legal entities, Omnipresent’s PEO service allowed the newly divested company to easily and cost-effectively outsource HR, benefits and payroll.

In contrast to a payroll-only outsourcing solution, Omnipresent’s PEO service meant that Soundtrap had access to all of the following.

• Fully managed payroll, including support with compliance and taxes and state registration (in the USA).
• Mandatory and statutory benefits for US and UK employees, as well as bespoke support with brokering any supplementary benefits.
• Dedicated support from Omnipresent’s Customer Success team with expansion planning as Soundtrap grows as an independent business.
• Compliant employment contract templates for the US and UK.

VEO in Germany & Spain

It’s an increasingly popular option for companies hiring in the EU to register as a Non-Resident Foreign Employer

For Soundtrap’s leadership team Omnipresent’s VEO (Virtual Employer Organisation) product was another bespoke solution for their employment needs in Germany and Spain.

Omnipresent’s global employment platform made it easier to handle VE registration, benefits, payroll, and HR support in Germany and, more recently, Spain.

Because Omnipresent’s VEO solution does not fall under specific EOR regulations such as 18-month time restrictions in Germany, this was another important step in ensuring a swift, compliant employee transfer during Soundtrap’s divestiture.

“It's been an absolute delight working with Omnipresent. With a tight three-week timeline, they went above and beyond to ensure payroll and benefits were seamlessly set up in all countries. Their expertise throughout the process instilled a sense of confidence and security in having them as integral members of our team.”
- Olle Råghall, COO Soundtrap