- The Dutch government has decided to uphold its ban that stops Kyndryl from acquiring Solvinity on October 13, 2026.
- Officials say the deal could threaten public safety because Solvinity runs key systems for DigiD and other government services.
- The government will keep working with Solvinity until August 2028 while it prepares a new contract.
The Dutch government has shut the door on Kyndryl’s planned takeover of Solvinity. On October 13, Kyndryl revealed that officials upheld the ban after reviewing the company’s objections. The decision blocks the proposed deal. It also highlights a growing concern: who controls the technology that runs essential public services?
Solvinity manages IT systems that support DigiD, the Netherlands’ digital identity service. Over 16.5 million users rely on DigiD to access public services online. However, officials’ concerns go beyond just data privacy. They also want to protect Dutch control over key digital systems.
Why the Government Blocked the Deal
Kyndryl announced its plan to buy Solvinity in November 2025. The US company provides IT services to businesses and public agencies around the world.
Solvinity, meanwhile, runs technology that supports Dutch government services. Its work includes the platform behind DigiD.
The proposed deal raised concerns about foreign control of sensitive systems. Critics feared that US authorities could seek access to data under American law.
For example, the US CLOUD Act allows authorities to demand certain data from companies under US jurisdiction. The law can apply to data stored outside the United States.
That raised questions about how a US owner might handle sensitive Dutch information. Officials also considered the risk of disruptions to essential services.
However, the government did not claim that US authorities had accessed DigiD data. Instead, officials focused on the risks that the proposed takeover could create.
The Investment Assessment Office, known as BTI, reviewed the deal. It found that the proposed acquisition could threaten the public interest.
On May 25, 2026, the government formally banned Kyndryl from taking control of Solvinity. The government announced the decision the next day.
Officials relied on Dutch telecommunications law to block the transaction. The law lets the government restrict ownership changes that could threaten the public interest.
What this Development Means for DigiD Users
Residents use DigiD for identity verification when using public online services, including tax affairs, health care services, pensions, education, and local government affairs.
Solvinity manages the technology platform for the service. Yet, Solvinity does not have all the information stored that people can access via DigiD. The government institutions and other organizations store all those records. DigiD helps users sign in and reach those services.
Solvinity does handle some information needed to operate the platform. DigiD says this includes users’ IP addresses and email addresses.
They maintain strict rules and robust security to keep that data safe. A foreign company takeover could trigger concerns of who has legal access, who really controls the system, and continuity of services. It could also create risks if a provider stopped supporting essential services.
These concerns shaped the government’s decision. But the ban does not prove that a data breach occurred or that anyone stole personal information. Governments are also taking steps to address other online safety concerns. Poland plans to ban mobile phone use in schools for children under 15 and introduce measures to prevent access to pornography.
Companies Failed to Overturn the Ban
The dispute continued after the government blocked the deal. Solvinity and its majority shareholder, Host Lux, filed objections on June 11. They challenged the government’s decision and sought a fresh review.
The government then examined the objections and carried out further research. On October 13, State Secretary Willemijn Aerdts confirmed the original decision. Aerdts said the proposed takeover could threaten the public interest. She also said the ban remained necessary to protect that interest.
The government stressed that its investment rules apply to all investors, whatever their country of origin. Therefore, the decision does not amount to a blanket rejection of US technology firms.
Earlier court proceedings also failed to clear the way for the deal. A court rejected a request to suspend the ban while the dispute continued.
The October decision closed the government’s review of the companies’ objections. Kyndryl now says the deal cannot proceed under the current decision.
Kyndryl Accepts the Outcome
Kyndryl said it was disappointed by the government’s decision. However, the company confirmed that it would respect the outcome. Kyndryl said in an October 13 statement that the ban prevents the deal from moving forward. It urged Solvinity and its shareholders to put their focus on daily operations. Kyndryl also advised Solvinity to strive to keep its service stable for both customers and employees.
Kyndryl said it would continue supporting customers across the Netherlands. However, it will not complete the proposed purchase under the ban. The decision leaves Solvinity’s ownership unchanged. It also keeps the focus on maintaining reliable services for Dutch public agencies.
What’s Next?
For now, the Dutch government will continue working with Solvinity. The current contract the platform has with the government over DigiD will remain active until August 2028. They extended the contract to avoid switching providers abruptly, which impact service security and cause disruptions. Moving such a critical system takes careful planning.
Meanwhile, the government has started preparing a new procurement process. It plans to use defense and security purchasing rules, which offer more ways to manage national security risks.
DigiD says people can continue using the service as usual. The government’s priority is to keep the platform running safely while it plans the next contract.
The ban does not remove every risk linked to foreign technology. Instead, it shows how governments weigh privacy, national security, and reliable public services when companies seek control of critical systems.
For the Netherlands, protecting those systems now takes priority over Kyndryl’s planned acquisition.
