THE HAGUE, May 26 (Xinhua) -- The Dutch government on Tuesday announced the decision to block the intended acquisition of Dutch IT service provider Solvinity by U.S. technology company Kyndryl, citing possible risks to the public interest.

Dutch State Secretary for Economic Affairs and Climate Policy Willemijn Aerdts said in a letter to parliament that the decision followed a binding recommendation from the Dutch Investment Assessment Office (BTI), the national authority responsible for screening investments to avoid risks to national security.

"On Nov. 21, 2025, the BTI received a notification from the intended buyer (Kyndryl) and decided to initiate an investigation in accordance with the Telecommunications Undesirable Control Act (WOZT)," Aerdts said.

Following months of investigation, the BTI concluded that the intended acquisition of Solvinity, a Dutch cloud and IT services provider serving government institutions and the financial sector, may pose "a risk to the public interest."

Aerdts said swift action was necessary after authorities received indications that the transaction was close to completion. "I saw no other option than to take this decision now to protect the public interest," she said.

The state secretary emphasized that the screening process was "country-neutral, risk-based and proportionate and constitutes an objective assessment solely intended to prevent risks to the public interest."

Kyndryl, a U.S.-based IT infrastructure services provider with a market capitalization of approximately 2.7 billion U.S. dollars, said it was "extremely disappointed" by the Dutch government's decision. However, Solvinity said in a statement on Tuesday that it would continue to engage with relevant authorities over concerns about national security, digital autonomy, and the protection of Dutch critical infrastructure.