Controversial blog seeding firm

PayPerPost

has backed out of its purchase of

Performancing.com

, just a week after announcing the deal.

The acquisition would have given the company an analytics platform to allow tracking of blog sites and its paid-for blog posts, as well as Performancing’s recruitment site, Performancing Exchange.

However, a short statement posted on the company’s blog said it had discovered the analytics solution “wasn’t a fit”:

“After much discussion and heartache we have decided to walk away from the Performancing deal. We listened to our Posties and other Metrics users, dug into the Metrics platform and regretfully found that it wasn’t what we were looking for right now.”

The move has raised many eyebrows in the blogosphere, with many wondering about the effectiveness of Payperpost’s due diligence before it completed the deal.

It also comes as increased scrutiny is being placed on the transparency of the firm’s paid-for blogging service. 

Michael Arrington, who regularly slams the company, took the opportunity to weigh in :

“Generally speaking, responsible companies “dig into” the acquisition target before they announce a deal.

“Whatever happened, this isn’t pretty. After the deal was announced, Performancing moved [its] non-acquired assets to a new domain name and re-launched that service.

“[It] certainly stopped talking to other potential acquirors, given that the deal was officially announced. In merger-land, this is what’s known as ‘being left at the altar’ because everyone down the road who you talk to will want to know why the previous deal exploded.”

Performancing.com’s Nick Wilson said the company would be taking its metric solution open source after the deal’s collapse:

“After much discussion, we’ve decided that the deal proposed by PayPerPost just isnt right for us or our community. It’s regrettable that we should part ways as I still feel that Dan and Ted are stand up guys breaking new ground, but in the end, the deal was just not right for them or us.”

PayPerPost’s blog added that anyone with a “robust analytics solution with consistently accurate data reporting” should drop it a line.