Canadian firm's shares shoot higher after buying website, allying with CAT

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Shares of Canadian company Ritchie Bros. Auctioneers, the world's largest industrial auctioneer, rose more than 20 percent Tuesday in New York trade after two big announcements.

In addition to buying private e-commerce site IronPlanet for approximately $758.5 million, the company also announced a strategic alliance agreement with Caterpillar, under which Ritchie Bros. will become Caterpillar's preferred global partner for live onsite and online auctions.

At $4.78 billion market capitalization, Ritchie Bros Auctioneers is a leader in selling a broad range of used and unused equipment for construction, transportation, agriculture, mining, and other industries.

Ritchie Bros Auctioneers 5-day performance

These announcements come at a time when Ritchie Bros. continues to diversify its portfolio and company offerings.

"We believe the combination bolsters RBA's ability to deliver a wider array of auction options to customers at the same time it removes a viable competitor," said KeyBanc Capital Markets in its latest research note on Monday.

The closing of the IronPlanet acquisition is expected by the first half of 2017.