By Stephanie van den Berg THE HAGUE, May 26 (Reuters) – The proposed sale of Dutch cloud services provider Solvinity to U.S. software company Kyndryl will be blocked under a law designed to curb foreign control over telecoms services, a Dutch government minister said on Tuesday. • Solvinity hosts the Dutch government’s DigiD personal identity […]
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Dutch government to block takeover of cloud services company Solvinity by US-based Kyndryl
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By Stephanie van den Berg
THE HAGUE, May 26 (Reuters) – The proposed sale of Dutch cloud services provider Solvinity to U.S. software company Kyndryl will be blocked under a law designed to curb foreign control over telecoms services, a Dutch government minister said on Tuesday.
• Solvinity hosts the Dutch government’s DigiD personal identity system, which residents of the country must use to contact government services and to access their medical, insurance and tax files among other things.
• In a letter to parliament, Junior Economic Affairs Minister Willemijn Aerdts said that the government bureau tasked with such rulings concluded that the intended takeover of Solvinity is a possible risk to public interest.
• Parliament had feared that a takeover by Kyndryl would allow the U.S. government access to all information held by Solvinity.
• The Economic Affairs ministry said it is in contact with Solvinity and its current owner about the next steps.
(Reporting by Stephanie van den BergEditing by David Goodman)