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In March 2002 SAP purchased TopManage Financial Systems, an Israel-based developer of business applications and branded their system as SAP Business One. TopManage was founded by Shai Agassi who was formerly president of the Product and Technology Group at SAP and his father Reovan – the team behind portal company TopTier, which SAP bought in March 2001.

The acquisition allowed SAP to reach out to the midmarket through its partners and also to gain additional business from the smaller subsidiaries of its enterprise customers.

In December 2004, SAP acquired the technology and assets of iLytix Systems AS, a privately held software company based in Oslo, Norway. As a result SAP introduced new reporting and budgeting capabilities in SAP Business One called XL Reporter.

In July 2006 SAP acquired Praxis Software Solutions and plans to integrate the company's Web-based CRM and e-commerce capabilities into SAP Business One. Financial terms of the deal weren't disclosed. Minneapolis-based Praxis, a private software company, had previously been a SAP Business One partner.

Integration can be achieved using the SDK component called DIAPI. The DIAPI provides COM based interface to the business objects & business logic of SAP Business One. As those are APIs, using them requires software development skills. More simple way to achieve an integration is using the SAP Business One integration platform (a.k.a. B1i) the integration platform enables simple (XML based) definition of integration scenarios. the B1i platform is being used for integration with SAP's large enterprise systems SAP R/3.

Integration needs are present even for small business users. For example, SAP Business One offers a client/server and Microsoft Windows graphical user interface GUI only. It is also limited to a single chart of accounts. Obviously, many of the potential users of SAP Business One need integration of their existing websites, consolidation of multiple ERP systems and other integration solutions. The Business One SDK provides some other components that allow development of add-ons to the Business One Application.

At the end of 2006, the company reported 13,000 B1 customers worldwide.

In 2011 SAP partnered with CityXsys to use their business consolidation solution to extend reach for SAP Business One intercompany integration. The solution enables businesses to manage intercompany transactions for more than one company by automatically replicating corresponding transactions across multiple company databases.

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