The Netherlands investigates impact of Kyndryl's acquisition of Solvinity

"The Dutch government will investigate the consequences of the American IT company Kyndryl's takeover of the Dutch cloud service provider Solvinity. The company plays an essential role in the national identity system DigiD. Solvinity believes that the collaboration with Kyndryl will offer more opportunities to continue innovating in IT management, security, and automation. "We are aware of the questions that are circulating in the market," said CEO Daniëlle Schuur earlier this month."

"Outgoing Minister of the Interior Frank Rijkaart said on Friday that "such an acquisition could be cause for concern." The cabinet wants to become less dependent on American tech companies. There is concern that these companies could put pressure on the Netherlands if, for example, they process Dutch data. "We need to take a close look at the implications," said Rijkaart. Several ministries are busy assessing the situation."

"The minister does not want to block the takeover just yet. "It's too early for that. We first need to see what this is really about," he explained. After the cabinet meeting, State Secretary Eddie van Marum of Digitalization emphasized that DigiD "is Dutch and will remain Dutch." The state attorney and the ministries of Economic Affairs and the Interior are thoroughly investigating the matter."

The Dutch government will investigate Kyndryl's takeover of Solvinity because Solvinity supports the national DigiD identity system. Solvinity says collaboration with Kyndryl will foster innovation in IT management, security and automation and will not affect customer service. Solvinity is engaging governments and customers to clarify the proposed acquisition and emphasizes its cloud solutions keep sensitive data in required jurisdictions to meet strict storage rules. Outgoing Interior Minister Frank Rijkaart warned of concern over strategic dependence on American tech firms and possible pressure if Dutch data are processed abroad. Several ministries and the state attorney are investigating the implications.

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