Solvinity calls for Dutch government to review takeover ban

Dutch IT firm Solvinity is calling for the government to reopen its investigation into the blocked takeover by US digital services company Kyndryl, arguing that the original probe was flawed.

The company is seeking a court injunction that would force Willemijn Aerdts, junior minister for digital sovereignty, to review her decision to intevene on national security grounds.

The €100 million deal had already been approved by the consumer markets regulator ACM, but Aerdts acted on concerns about DigiD, the online gateway used to access private information held by the government, which is managed by Solvinity.

Technology experts and MPs warned that the takeover would bring Dutch residents’ private data within the domain of the Cloud Act, which allows US authorities to force American-owned companies to hand over data they store, even if the servers are in Europe.

Media “commotion”

Lawyers for Solvinity said the minister had allowed herself to be influenced by “commotion in the media”, but the Dutch state said the BTI, the agency that analyses the national security impact of cross-border investments, had carried out a thorough assessment.

The government said Solvinity also managed sensitive data on behalf of the police service and the justice ministry, including the personal details of criminal suspects, which are anonymised in public documents.

Part of the court hearing on Monday was held behind closed doors so that Solvinity and the Dutch state could discuss secure information in private. Aerdts had earlier held a private briefing for MPs on the decision to block the takeover.

The court is expected to deliver its judgment in two weeks’ time.