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Fractal – bringing premium products to gamers globally.

Building a global top three player within the premium gaming products market.

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About Fractal.

Fractal, with head office in Gothenburg, Sweden, is a leading company in the premium segment of PC gaming products. The company was founded in 2010 and its products are currently sold in more than 50 markets worldwide. In 2016, Litorina partnered with Hannes Wallin and his team to support Fractal in its global expansion ambitions.

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Investment rationale.

Fractal was a niche gaming products supplier with good market positions in key gaming markets internationally. Litorina saw the potential to invest in a company supported by the gaming megatrend with a clear potential to broaden the product offering and to strengthen the international market position. The ambition was to support Hannes Wallin to build a global premium brand with a future proof distribution model.

Value creation initiatives.

  • Setting the foundation
  • To enable a broadening of the product offering and a global expansion, Litorina strengthened the board with both gaming and international experience. Together with the CEO, we also strengthened the team with several new members to the management team including a new CFO, CMO and Head of Supply Chain in addition to revamping of the product development department significantly. In total, the organisation more than doubled in size during Litorina’s ownership.

 
  • Broadening the product offering
  • When Litorina became a partner to the Fractal team, the company was relatively reliant on its flagship Define case series. In order to grow and reduce product concentration, the team ramped up its product development capabilities and broadened the offering with additional functionality as well as esthetical variations. Thanks to a loyal fan base and Fractal’s focus on launching products characterized by high-end design, performance and quality, Fractal was able to diversify its business and build a robust and wide product offering, supporting its global expansion plans.

 
  • Global expansion
  • Fractal is active within a market characterized by strong growth driven by the increased interest in gaming across all age groups. To capture the huge international growth potential for gaming products, Fractal launched a new graphical identity that matched its premium positioning, invested sales resources in its existing markets such as the US, and refined its global marketing strategy, and simultaneously expanded to high-growth regions such as the Chinese market.

 

Result.

In February 2021, Litorina listed Fractal on the Swedish stock market. During Litorina’s ownership Fractal achieved sales growth of 25% per year to SEK 635m. Despite investing heavily in the organization and product development, the earnings increased five-fold to SEK 140m in 2020. Having sold more than five million products since inception, Fractal is now a top three player within its niche globally.