The Dutch government imposed a complete prohibition on Kyndryl's acquisition of Solvinity on May 25, citing public interest and data security concerns [1, 2]. Solvinity operates the DigiD platform, which Dutch residents use to verify their identity for e-government services. It also runs the hosting infrastructure for DigiD [3, 1, 2].
Kyndryl, a US-based company, had announced its intent to acquire Solvinity from British private equity firm Vitruvian Partners in November 2025 [3, 2]. The deal had received approval from the Netherlands Authority for Consumers and Markets (ACM) before the government's final blocking decision [2].
The Dutch Digital Economy Minister, Willemijn Aerdts/Aerts, announced the ban and ordered a security assessment by the Bureau for Investment Screening (BTI) [1, 2]. The government’s concerns focus on the risk that Dutch citizens' personal data could be exposed to US authorities under the US Cloud Act if Kyndryl gained control of Solvinity [1, 2].
In April 2026, the Interior Ministry extended Solvinity’s contract to continue operating the DigiD platform, ensuring continuity of service despite the ownership dispute [2].
Kyndryl expressed it was "extremely disappointed by the decision" to block the acquisition [1].
The Dutch government’s move maintains Solvinity’s current ownership structure while reviewing security risks related to foreign ownership of critical digital infrastructure.
The next scheduled development is the ongoing security review led by the Bureau for Investment Screening, which will assess foreign investments affecting national data security.
