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Dutch Government Bans Kyndryl Purchase of Solvinity

A security review concluded U.S. laws could let external actors reach sensitive DigiD data, leaving ownership questions and legal appeals unsettled.

Overview

  • The cabinet issued a full ban on Kyndryl’s planned takeover of Solvinity on Tuesday after the Bureau Toetsing Investeringen advised the deal could harm the public interest.
  • The BTI applied the Wet ongewenste zeggenschap telecommunicatie with a land‑neutral, risk‑based test and found the risks to national security and citizen data could not be removed.
  • Kyndryl said it was extremely disappointed and may appeal while Solvinity said it will keep providing secure services and remain in talks with authorities about continuity.
  • The government has told the United States about the decision and said it does not expect sanctions; Logius’s contract was previously extended to protect DigiD operations during the review.
  • The ruling creates a precedent for tighter screening of foreign buyers of critical digital infrastructure, leaves Solvinity’s future ownership and value uncertain, and keeps pending court cases and possible appeals active.