Image source: XenoPort, Inc.

What: After  XenoPort, Inc. (UNKNOWN:XNPT.DL) announced that it has agreed to be acquired for $7.03 per share in cash, its shares are soaring 56.6% today.

So what: The board of directors has agreed to sell the company to Arbor Pharmaceuticals in a deal valued at $467 million. Arbor Pharmaceuticals is a privately held maker of drugs for the cardiovascular, hospital, and pediatric markets. It employs 500 sales people who promote 20 NDA or ANDA approved products.

The acquisition nets Arbor Pharmaceuticals' XenoPort's Horizant, a Food and Drug Administration-approved therapy for restless leg syndrome. In Q1, Horizant sales were $13.7 million, up 106% from the same quarter one year ago. Total tablet volume prescribed in the quarter grew 51% year over year. 

Now what: XenoPort has been making some progress with Horizant, but it was still losing money and burning through cash, so this deal makes sense.

Having said that, this is a cash deal, so there really isn't much reason for investors to consider buying XenoPort shares ahead of its expected close in the third quarter. There's a little arbitrage opportunity given the deal price, and another bidder could emerge. That, however, is a long shot since it sounds like management evaluated multiple offers and chose this one. Overall, it's probably best to focus on other investment ideas.