Under the agreed terms, Great Western will offer $19.70 to HF Financial stockholders for each common share.
Based in the US state of South Dakota, HF Financial is the parent company for financial services companies, including Home Federal Bank, Mid America Capital Services, Hometown Investment Services and HF Financial Group.
HF Financial operates with 23 offices in 17 communities, throughout Eastern South Dakota, Minnesota, and North Dakota.
With this acquisition, Great Western will secure a branch presence in Fargo, North Dakota and Minnesota markets.
Upon completion of the acquisition, the combined company formed will have $11.3bn in assets, $8.5bn in loans, and $8.6bn in deposits.
HF Financial’s operations will be fully integrated into Great Western Bancorp.
Great Western Bank president and CEO Ken Karels said: "Home Federal’s strong market presence in Sioux Falls and outstanding reputation coupled with Great Western Bank’s comprehensive product offerings and strong capital base will allow the combined franchise to better meet the expanding needs of our customers and communities.
"This partnership continues Home Federal’s legacy and significantly expands our market visibility and customer base. We welcome Home Federal’s customers and employees to Great Western."
Subject to certain conditions, including the approval by Home Federal’s stockholders and customary regulatory approvals, the acquisition is expected to be completed in the second quarter of 2016.
