They had formed in 1990 in Gothenburg, signing to Mega Records in 1991 and releasing "Wheel of Fortune" the following year. The song was a Scandinavian hit, and the band signed a pan-European distribution deal with Metronome. "All That She Wants" then became a hit single in ten different country, and the band released Happy Nation, their European debut LP.
"All That She Wants" was the first in several American hits that was followed by a new version of Happy Nation called The Sign, including their best-remembered single "The Sign". 1995's The Bridge was a moderate success, as was the follow-up, 1998's Cruel Summer.
The band's popularity was harmed by revelations that members of the group had ties to neo-Nazi groups in Sweden.