Dealmaking in the European IT sector dropped about 35.1% year over year in January, according to S&P Global Market Intelligence data.

A total of 174 M&A deals were recorded in the first month of the year, amounting to an aggregate transaction value of $1.96 billion. In comparison, there were 268 deals struck in January 2022, with an aggregate transaction value of $3.98 billion.

No transaction during the month under review crossed the $1 billion mark.

KKR North America Fund XIII SCSp's $975 million acquisition of the Engineering Solutions business of IHS Markit Ltd. topped the list of M&A deals announced in the sector in January in Europe.

The transaction is subject to the receipt of required regulatory approvals, as well as satisfying other customary closing conditions, and is expected to close by the end of the second quarter. Engineering Solutions became a part of S&P Global Inc. following the company's merger with IHS Markit in early 2022.

BioNTech SE's agreement to acquire AI company InstaDeep Ltd. for $685.6 million was the second-largest transaction for the period under consideration. The transaction is expected to close in the first half of the year and is subject to regulatory approval. Meanwhile, semiconductor equipment manufacturer Veeco Instruments Inc.'s $65 million acquisition of Sweden's Epiluvac AB was the third top transaction. The deal was completed Jan. 31.

* Check out how dealmaking in Europe's IT industry fared in December 2022. * Use our Transactions Statistics page to run a custom screen of M&A by industry or geography.

Subsectors, including IT consulting and other services, systems software, semiconductor equipment, electronic equipment and instruments and internet services and infrastructure, contributed to deal activity.