The Dutch government has decided to block the acquisition of Solvinity, a Dutch IT supplier, by US-based company Kyndryl. The decision was based on advice from the national authority charged with screening investments, which identified a "possible risk to the public interest." Solvinity operates a platform for the DigiD app, used by Dutch citizens for online authentication with public authorities.
Kyndryl had announced its intention to acquire Solvinity in November. The Dutch government stated that while it values foreign investment, it also maintains an independent screening framework to protect the public interest. This framework applies equally to all investors, regardless of their country of origin.
The Dutch government's decision comes shortly before the European Commission is expected to release proposals aimed at reducing Europe's reliance on foreign technology in key sectors. Kyndryl expressed disappointment, stating that the process had been politicized and overshadowed the benefits the transaction would have brought.
