Cabinet raises concerns over U.S. firm Kyndryl buying Solvinity, key to DigiD

The government plans to assess what it would mean should Solvinity, a key player behind DigiD services, be purchased by an American company. According to the Authority for Consumers and Markets, the U.S. firm Kyndryl is close to finalizing its acquisition of Solvinity.

Interim Interior Minister Frank Rijkaart notes that an acquisition of this kind “could be troubling.” The government aims to lessen its reliance on American technology firms, especially because companies that handle Dutch data might use that position to influence the Netherlands. “We have to carefully examine what the consequences might be,” he said, adding that fellow cabinet members are “actively working on the issue.”

Rijkaart says he isn’t ready to stop the takeover at this stage. “It’s premature to go that far. We need to understand exactly what’s at issue before taking action.”

Municipalities are also concerned. Amsterdam, for instance, says it is “taken aback” by the possibility of Solvinity being acquired by a foreign company, noting that it had selected Solvinity to ensure the Netherlands’ digital infrastructure remained “dependable.”

A key worry involves the U.S. CLOUD Act. Since Kyndryl is an American firm, the U.S. government might, under this legislation, request access to data, even when that data is located in Europe.

Solvinity is a Netherlands-based company that delivers secure managed cloud solutions. Solvinity handles highly sensitive tasks for a range of clients, including government agencies, financial institutions, and other organizations with strict security requirements. Its Dutch locations include cities such as Amsterdam, Assen, Amersfoort, and Den Bosch.

According to Kyndryl, the takeover would enhance both security and innovation, as Solvinity’s sovereign cloud services could be integrated with Kyndryl’s worldwide strengths.

Solvinity maintains that its customer services, including those for government agencies, will continue without immediate changes. The firm notes that it is engaging in “constructive dialogue” with public-sector clients to address any uncertainty.