Federated Learning (FL) is a machine learning paradigm where local nodes collaboratively train a central model while the training data remains decentralized. Existing FL methods typically share model parameters or employ co-distillation to address the issue of unbalanced data distribution. However, they suffer from communication bottlenecks. More importantly, they risk privacy leakage. In this work, we develop a privacy preserving and communication efficient method in a FL framework with one-shot offline knowledge distillation using unlabeled, cross-domain public data. We propose a quantized and noisy ensemble of local predictions from completely trained local models for stronger privacy guarantees without sacrificing accuracy. Based on extensive experiments on image classification and text classification tasks, we show that our privacy-preserving method outperforms baseline FL algorithms with superior performance in both accuracy and communication efficiency.