American IT services company Kyndryl has abandoned its attempt to acquire Solvinity, the Amsterdam-based firm that runs the hosting platform behind DigiD.
The Dutch government blocked the €100 million deal in May on national security grounds.
A company spokesperson confirmed that Kyndryl no longer wants to acquire the firm, while Kyndryl’s latest regulatory filing noted that the sale had been prohibited.
National security concerns
Solvinity hosts the platform for DigiD, which millions of people across the Netherlands use to access tax services, pension funds, health insurers, and local councils.
The company also operates the Berichtenbox messaging service within the MijnOverheid portal and supplies the justice ministry.
Junior digital economy minister Willemijn Aerdts blocked the sale following advice from the BTI, the agency responsible for vetting foreign investments for security risks.
Officials and security experts warned that the takeover would bring Dutch data within reach of the US Cloud Act, which can compel American-owned companies to hand over information stored on European servers.
Appeals and future contracts
Solvinity, which is owned by British private equity firm Vitruvian Partners, is currently appealing the government decision.
A Rotterdam court refused to suspend the ban in July but instructed the minister to weigh lighter measures, with a ruling on the objection expected by the end of September.
Kyndryl’s regulatory filing noted that Solvinity and its owners are exploring remedies and may also pursue a claim against Kyndryl.
The current DigiD hosting contract runs until August 2028, after which the government plans to use defence and security procurement rules requiring the platform’s next operator to be European.
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