Friday, March 25, 2022
Friday, March 25, 2022
The acquisition was completed on March 15th, allowing Swedish group Kappa Bar to become the largest owner of esports bars in the world, creating a group 30 locations strong.
– When the opportunity arose there were no doubts in our minds, and we were quick to act, says Robert Dragovic, CEO of Kappa Bar.
Kappa was founded in 2017 and has established itself as the premier esports destination in Scandinavia by operating esports restaurants and bars in the largest cities in Sweden. Experiencing great success in its home market, the company recently looked to focus on international growth, and is proud to announce the acquisition of Meltdown bars, which operates 20 esports bars in 6 countries.
– Recently, our urge to grow internationally had become stronger. The roads leading to greater markets are always challenging, especially emerging out of the Nordics, says Robert Dragovic and continues; making the search for an international partner the top of our priority list.
A unique opportunity for international expansion
Kappa is a staple of elite esports culture in Scandinavia, which opened the door to a conversation with French esports bars giant, Meltdown. Through conversations around partnership and shared beliefs, a unique opportunity emerged.
We could see the potential synergies from our first discussion. Sophia is the esports culture personified; she is known by everyone both as a gamer, and of course as the owner of Meltdown, says Robert Dragovic.
Kappa Bar in the Nordics and Meltdown Bars globally
Both companies will form together the new Kappa Bar Group. The goal is to keep the Kappa Bar brand operating primarily in the Nordics and let Meltdown be responsible for the global
expansion. Robert will be the President of the Group and Sophia will continue as CEO internationally and as a Board member.
– Sophia Metz adds international experience, a unique industry network, and a strong model for international expansion. We at Kappa Bar come in with great expertise regarding conceptualization and unmatched ability to diversify sources of income. Together, we look to create business synergies in every way possible, says Robert Dragovic.
– Meltdown’s journey has been amazing, and I’m incredibly proud of what we have created. I knew I wanted new partners to take Meltdown further on the journey, and I especially appreciated Kappa Bar’s structure and long-term perspective, says Sophia Metz, CEO of Meltdown Bars.
– Robert Dragovic continues: We now have a unique opportunity to grow together, with a target of opening 100 venues by 2027. And considering the demand we’ve both received these past few months, we may well meet that goal sooner rather than later!
Some huge names in esports among the owners
The group's new ownership includes some of esports' most respected names such as Canadian entrepreneur Felix LaHaye, known for his prized work in both esports and as an influencer marketing pioneer, former Heroic CEO Erik Askered and partner PO Strömberg, alongside Twitch co-founder Kevin Lin, GD Studio founder James Harding and Swedish Black Molly Entertainment, including former DreamHack veteran Tomas Lyckedal.
– We have been the world's largest underground business for a little too long. Now we want to bring esports further out into the world and stage the big breakthrough. And the world is definitely ready.
Legal partners in this acquisition was Romain Franzetti (MF2A), Jakob Nortoft (Norma Law) and Me Dominique DUMAS (Dumas Structure).
