(Reuters) – U.S. exchange operator Nasdaq Inc said on Tuesday it would buy investment analytics provider eVestment Alliance LLC for $705 million to bolster its market technology business and woo more buy-side clients.

Evestment, whose cloud-based services help institutional investors monitor market trends and make investment decisions, would represent Nasdaq’s second acquisition since Adena Friedman took over as chief executive in January.

Apart from its namesake stock exchange, Nasdaq runs a large business that sells market technology to trading firms, exchanges and clearing houses around the world.

Revenue from that business rose 7.5 percent in the second quarter ended June and accounted for nearly 24 percent of overall revenue.

Friedman has been vocal about investing more in innovative technologies such as cognitive computing.

Nasdaq in July bought Sybenetix, a London-based startup that uses artificial intelligence to help compliance officers at asset management firms analyze the behavior of their traders in order to prevent market abuse.

It also closed several acquisitions last year, including that of options exchange operator International Securities Exchange.

“The investment management community is relying increasingly on independent data and advanced analytics to drive their key business decisions, including asset allocation and investment choices,” Friedman said in a statement.

Nasdaq said it would use debt and cash on hand to buy eVestment and expects the deal to close in the fourth quarter.

The company’s shares were down 1.9 percent at $73.94 in early trading.

Reporting by Nikhil Subba and Diptendu Lahiri in Bengaluru; Editing by Sai Sachin Ravikumar

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