The Dutch government has upheld its ban on U.S. IT services company Kyndryl acquiring Solvinity, the Amsterdam company that operates technical infrastructure behind DigiD, the national login system residents use to access government services. State Secretary for Digital Economy and Sovereignty Willemijn Aerdts set out the decision in a letter to the Tweede Kamer, the lower house of parliament, after reviewing objections to the original prohibition.
Aerdts blocked the sale in May on the advice of the Investment Screening Bureau (BTI), which concluded that the deal could pose a risk to the public interest. Solvinity and its majority shareholder Host Lux, which is backed by British investor Vitruvian, then filed objections to the ban.
After reconsidering the facts and reviewing additional research, the state secretary again concluded that the proposed acquisition could pose a threat to the public interest. A judge ruled on July 14 that the ban could remain in place, provided the government examined whether other measures might be more appropriate. Aerdts told lawmakers that blocking the sale remains the best option.
Kyndryl said it was “once again disappointed” by the outcome. “Despite all our efforts, this second decision by the minister leaves no room for debate: this acquisition is prohibited by law and cannot be completed. We accept the outcome and look ahead,” the company said. Kyndryl added that it would ask Solvinity and its shareholders to accept the decision and focus on continuity for Solvinity’s customers, employees and operations.
Solvinity said it had taken note of the decision and would review it. The objectors can still appeal to the court in Rotterdam or ask a judge for interim relief that would suspend the ban.
In the letter, Aerdts said protecting the public interest comes first for all investors, regardless of their country of origin. The state secretary added that the Netherlands places great value on the presence of foreign technology companies, explicitly including American ones.
The dispute centers on who controls infrastructure supporting the country’s primary government login. Members of parliament have raised concerns that U.S. regulations could allow the American government to shut down DigiD if the operator came under U.S. ownership. The Tweede Kamer voted in April to call on the government to move DigiD away from Solvinity before any takeover.
Kyndryl, a former IBM business focused on managed IT infrastructure services, announced its agreement to buy Solvinity in November 2025. Solvinity continues to provide the infrastructure that allows part of DigiD to operate.
Sources: NL Times, Computable
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By the ID Tech Editorial Team
