Officials with Alberta Health Services announced Friday that an Australia-based company has been chosen to take over laboratory services in Edmonton.

AHS announced Friday that Sonic Healthcare had been chosen following a review process – and will take over lab services in Edmonton and parts of central and northern Alberta.

The 15-year contract is worth about $200 million a year – a cost AHS said was similar to the current cost for lab services.

“We looked at things like cost and quality ability to do other tests other than what’s currently being done so we do send a number of tests outside of Alberta and we’d like to get those tests done back in Alberta,” AHS CEO Vickie Kaminski said.

AHS’ contract with the current provider, DynaLife, expires in 2016.

DynaLife released a statement in response to the news Friday; CEO Jason Pincock called the decision “very disappointing”.

“We have had a long-standing, positive relationship with the people we serve and we are very proud of our track record in delivering high quality lab services to Albertans.”

DynaLife said the company met with staff Friday to talk about the decision, 1,200 people work for DynaLife.