Consolidate or Federate Multiple Office 365 Tenants – Step by Step Tutorial

Mohit Jha ~ Modified: January 28th, 2023 ~ Office 365 ~ 6 Minutes Reading

There are many critical factors that are involved in consolidating multiple Office 365 tenants, if there are several users available in a single Office 365 tenant, then federating two Office 365 tenants will become more complex. Therefore, many organizations are searching for a solution to perform Office 365 tenant to tenant migration because there is no way provided by Microsoft.

Benefits of Consolidating or Federating Multiple Office 365 Tenants 

  • By consolidating or federating multiple tenants, organizations can better control access to sensitive data and improve overall security by centralizing identity management.
  • Merging multiple tenants in Office 365 can provide users with a more seamless experience across different divisions or subsidiaries, reducing confusion and improving productivity.
  • It can also reduce the number of licenses Organizations need to purchase and streamline their IT infrastructure, ultimately leading to cost savings.
  • By consolidating multiple Office 365 tenants, organizations can gain better visibility into the usage and activity of Office 365 across different divisions or subsidiaries, which can be used to optimize the use of Office 365 and make more informed decisions.
  • Federating multiple Office 365 tenants can help organizations better comply with industry regulations and standards, such as GDPR and HIPAA, by centralizing data and making it easier to manage and secure.

It is important to note that consolidating or federating multiple Office 365 tenants requires planning and testing, and requires a more advanced level of Office 365 knowledge and skills. It is recommended to work with experienced Microsoft Partners.

After Merger, Acquisition, or Divestiture, it becomes a tedious task to maintain & collaborate with several users of multiple tenants in Office 365. Hence, organizations always look for a quick solution to consolidate multiple Office 365 tenants as soon as possible.

Moreover, we have received several queries regarding the same situation, one of them is as follows:

Company A & Company B both are using O365 tenants. ‘A’ is obtaining ‘B’ and wants to “merge” the two tenants so they can share Outlook calendars, add to SharePoint/Teams, Onedrive, etc. Ultimately over time, new user accounts in Company A would be created for users & Company B tenants would be deleted. However, it does not sound practical to create users in A manually. Is the first part just federation? And whatever that situation is, how to consolidate Office 365 tenants?

Therefore, in this write-up, we have come up with an automated solution that can simplify the complications of this process. And even a naive user can easily execute this task without getting into the technical PowerShell & Active Directory synchronization. 

5 Quick and Easy Steps to Consolidate Multiple Office 365 Tenants

  • Step 1. Download, install and run software on the computer.
  • Step 2. Pick Office 365 as the source and destination platform. 
  • Step 3. Choose the required mailbox category & apply date filter.
  • Step 4. Provide source & destination Office 365 admin credentials. 
  • Step 5. Validate required permissions & click on start migration. 

Right Approach; Merge Multiple Office 365 Tenants into One Tenant

The bitter truth is that federating multiple Office 365 tenants is a complex & error-prone task. Moreover, it becomes time-consuming and there is no tool available that can make it automated in every aspect. Hence, to eliminate the complexity of managing multiple Office 365 tenants we can consolidate required Office 365 tenant data. To do this job it is suggested to use SysTools Office 365 Merge Tool.


This tool is developed with advanced technology and methodology, it allows users to easily mitigate the complexity of federating two Office 365 tenants. It provides many features that all help us to easily perform this task; some highlighted features are given below –

1. Consolidate Office 365 tenants’ emails, contacts, calendars, and documents.

2. Federate multiple (source & destination) Office 365 tenants after mergers & acquisitions.

3. Date-based filter option for emails, contacts, calendars, and documents.

4. Allow consolidating of entire Office 365 tenants’ data including domain users’ data.

5. Provides the option to create a mapping between users that you want to consolidate.

6. Support Office 365 enterprise e1, e2, e3, Exchange online plan 1, 2, Business Premium, Office 365 a1, a3, a5, f1, and business essentials.

Federate Two Office 365 Tenants Smoothly with Pre-Plannings

1. In this process, we have to identify which data is required to consolidate and which is not.

2. Make sufficient space in the tenant where you will consolidate data & users. 

3. Verify the domain in target Office 365 tenants.

4. Schedule the process by creating a CSV file (to create a mapping between source & destination users).

5. Admin credentials are required, create a project in Microsoft Azure, allow application permissions & generate an Application ID. Let’s move to the next steps where we will federate multiple Office 365 tenants.

But first, download the software –

Free Download Purchase Now

Software Steps to Consolidate Two or Multiple Office 365 Tenants Safely 

Step 1. Install & run the software, then select Office 365 as a source and destination.

Step 2. Then select the items (emails, contacts, calendars, documents), from the same screen you can apply the date filter and enable migrate document permissions & use group mapping. After applying the required options click on Next.

Step 3. Now, enter the source Office 365 Admin ID, and Application ID then click on Validate button.

Step 4. The tool will verify permissions, after validating permissions click on Next.

Step 5. Enter the destination Office 365 Admin ID & Application ID then click on the Validate button to validate permissions.

Step 6. After the successful permission validation, click on Next.

Step 7. Now, we have to create a mapping between users (which you want to consolidate). To do this tool provides three options – fetch users, import users, and download template. Choose any one of them and proceed to the next step.

Step 8. After mapping creation, click on the Validate button.

Step 9. After validating permissions click the Start button to consolidate multiple Office 365 tenants.

Now, we have successfully federated two Office 365 tenants.


Post mergers & acquisitions scenarios create complications for business organizations in order to manage multiple Office 365 tenants, in such situations, it becomes crucial to consolidate two Office 365 tenants into one. Understanding the gravity of the situation we have explained the step-by-step method using a professional tool to federate two Office 365 tenants safely.

Moreover, users can also avail of the trial version of this tool before getting its paid version in order to verify the working & performance. The demo version offers you to merge two Office 365 user accounts for free.