Dutch Government Blocks US Firm’s Acquisition of Key Cloud Provider Managing National Digital ID

The Dutch government has fully prohibited Kyndryl, a US-based IT infrastructure company spun out of IBM in 2021, from acquiring Solvinity, a prominent Dutch cloud provider. The acquisition, valued at around €100 million, would have transferred control of the platform operating DigiD, the Netherlands’ national digital identity system, to a company headquartered in the United States. This move underscores the government's priority to maintain domestic oversight over critical digital infrastructure.