In the early 1920s the two Borlänge clubs IK Blixt and Domnarvets GIF merged to form a new club by the name of Domnarvets GoIF. The motive for the merger was to combine their efforts in building the new stadium that would become Domnarvsvallen. The merger did not go smoothly however as the IK Blixt members felt that there needed to be more focus on the football part of the multisport club. This caused them to want to bring back the original IK Blixt but the newly formed Domnarvets GoIF would not allow this since they technically owned the name as IK Blixt was half of the new club. So in 1925 the old IK Blixt members started up a new football club instead and decided in a meeting that the new name would be IK Brage, named after the Norse god Bragi.