Netherlands blocks US firm Kyndryl from buying national ID system provider

The Netherlands has blocked US IT giant Kyndryl from acquiring Solvinity, which hosts the DigiD national ID system and serves 16 million Dutch citizens. The decision comes after a security investigation warned the deal could put people’s personal data at risk of falling into US hands.

In November 2025, American IT service provider Kyndryl said that it was interested in acquiring Solvinity.

The announcement raised concerns with privacy experts and politicians. They feared that confidential and personal data of over 16 million DigiD users could fall into the hands of American authorities. There was also concern that the United States could disable services in the Netherlands via DigiD.

Therefore, the government was asked to stop the acquisition of Solvinity. Eric van der Burg, Minister for Kingdom Relations and Effective Government, said that he couldn’t do that in order to guarantee the continuity of DigiD.

A handful of citizens filed summary proceedings against the government, but the District Court of The Hague dismissed the claims.

There was one more option left to put a stop to the acquisition: the Investment Assessment Office (BTI). The agency has been looking into whether the proposed acquisition would pose risks to the Netherlands’ national security.

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On Tuesday, the BTI presented its findings to Willemijn Aerdts, Minister for the Digital Economy and Sovereignty.

“BTI has concluded that this proposed acquisition of Solvinity may pose a risk to the public interest. The agency advised me to impose a complete ban on this acquisition. I have adopted this advice and acted upon it,” she wrote in a letter addressed to the House of Representatives.

In response, Kyndryl said it is “extremely disappointed” with the government’s decision and stated that it has always collaborated with the cabinet in good faith.

“Despite this collaboration and our long history of managing business-critical activities in the Netherlands, the politicization of this process has overshadowed the clear and significant benefits that this transaction could have offered to Solvinity's customers and Dutch citizens,” the American IT service provider stated.

Minister Aerdts emphasized that BTI’s investigation was “country-neutral, risk-based, and proportionate.”

“The Netherlands values the presence of foreign technology companies, including American ones, and their contribution to the Dutch economy and digital infrastructure,” she concluded.

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